Sentences with phrase «borrowers in a cycle of debt»

It is this second feature that in the 19th Century first earned even nonviolent loan sharks their «shark» moniker — a single loan, even if it is expensive, looks harmless enough, but stealthily traps the borrower in a cycle of debt.

Secured by a post-dated check, direct access to a borrower's bank account, or a car title, these loans frequently trap borrowers in a cycle of debt.

Not exact matches

Rather than helping to create opportunity in impoverished communities, some microloan programs have stymied growth as lending agents have pocketed much of the cash raised and placed borrowers in an inescapable cycle of debt.

Lenders would still be free to charge annual rates well into the triple digits, but the law would eliminate what critics say is the worst aspect of payday loans: borrowers caught in a cycle of debt by taking out loans over and over.

Borrowers end up paying horrendously high interest and become trapped in a cycle of debt.

The subsequent scenario, coupled with the initial unfortunate situation that necessitated the borrower to approach the lender, leaves most folks in a cycle of debt that will take some time to get out of.

Reloading leads to a spiraling cycle of debt that often convinces borrowers to turn to home - equity loans offering an amount worth 125 % of the equity in the borrower's house.

There are lenders who may quote high - interest rates on loans and cause borrowers to end up in a cycle of bad debt.

These lenders also let borrowers continually renew the loan by paying only interest, trapping them in a cycle of debt.

Lower - income borrowers often wind up trapped in a cycle of debt, taking out a string of payday loans, paying high fees with each one and falling further behind financially.