Numerous tennesseans that are cash-strapped looked to pay day loans in a down economy

Numerous tennesseans that are cash-strapped looked to pay day loans in a down economy

But a new item known as a flex loan is quickly becoming the industry norm.

It is an open-ended personal credit line with an impressive 279per cent yearly rate of interest.

Tennessee is among the very first states where you could have the brand new flex loans. These loans also have high interest rates like payday loans.

Even though those who work in the industry say flex loans are a lot better than old-fashioned payday advances, both experts and customers we chatted to say you need to be cautious because flex loans could be tough to pay back.

If you are quick on money, a flex loan may seem like the solution.

But also for folks like Malia Andrews, it had been the incorrect response.

“we more or less had a whole meltdown into the automobile,” Andrews recalled, explaining the minute she noticed it could just simply take years to cover her flex loan off.

She explained, “and just like $20 of my re re payment would definitely the main as well as the sleep ended up being, like $300, was going to the rate of interest.”

The mother that is single that, if she’d known how much the mortgage would wind up costing her, she never ever could have taken it away.

Then there is Fort Campbell veteran Joshua Hause.

“Everybody ended up being relocated right into a flex loan account — there clearly was no option,” Hause stated. […]