Legislature has to rein in payday loan costs: Editorial

Legislature has to rein in payday loan costs: Editorial

Whenever lawmakers convene Monday for the 2014 session, they’ll be considering legislation to set an innovative new limit for interest levels for payday advances.

(NOLA | The Times-Picayune archives)

Louisiana residents that are strapped for money can find yourself spending extraordinarily high interest and costs on short-term loans getting them from paycheck to paycheck. Based on the Louisiana Budget venture, an average $100 pay day loan right here costs $30 in interest. That amounts to significantly more than 780 per cent interest if determined being a yearly price.

Numerous short-term borrowers additionally wind up recycling the loans numerous times them off with their next paycheck — normally within two weeks because they aren’t able to pay. Continue reading “Legislature has to rein in payday loan costs: Editorial”