Sentences with phrase «borrowers in debt traps»

Short - term loans, either from payday lenders or lenders that demand property such as an auto title as collateral, can ensnare borrowers in debt traps and lead to property losses while the annual interest rate can soar to over 400 %, according to federal regulators.

Not exact matches

North Carolina tried payday lending for a few years, then let the authorizing law expire after loans were found to trap borrowers in debt.

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

«These myths about student loans can lead borrowers to poor financial decisions, not to mention trap them in debt for longer than they need to be,» said lead researcher Rebecca Safier.

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.

This often traps borrowers in a debt cycle.

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.

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.