The REVOLVING doorPayday loan providers keep borrowers going back

The REVOLVING doorPayday loan providers keep borrowers going back

RICHMOND, Va. Elizabeth Lawson’s troubles started by having an $800 electric bill, caused by a water heater that is malfunctioning. Nonetheless it had been her move that is next that her funds spinning out of control.

Lawson, whom lives within the tiny city of Shawsville in southwest Virginia, went along to a lending that is payday in nearby Christiansburg. She borrowed $200, agreeing to cover a $36 charge once she received her next personal safety check.

Then Lawson, 49, began juggling, borrowing in one payday loan provider to greatly help repay one other. In 2004 and 2005, Lawson stated, she and her spouse had significantly more than five loans at different payday shops, racking up charges along the way in which.