Two words, Senators, repeat cycle.

According to Stephen Altobelli of the Financial

Services of America, "There are good payday loan operators and bad operators,"

but guess what, most of them are bad as they force you into a trap where you will

definitely owe more than you are capable of paying.

Senators, for the following reasons I’ve given you today I urge you to vote in

negation/affirmation of Senator _______________’s legislation for the following

three reasons: one, high-interest rates, two, they will 100% affect your credit

ratings, and three, limited financial flexibility.

Firstly, Senators, high-interest rates. According to paydayloaninfo.org, “Loans

typically cost 400% annual interest or more. The finance charge ranges from $15

to $30 to borrow $100. For two-week loans, these finance charges result in interest

rates from 390 to 780% annual interest rates. They are capable of going as high as

5,000% and these interest rates are one of the main causes payday loan borrowers

to go into debt.

Secondly, Senators, they will 100% affect your credit ratings. According to

creditrepair.com, “Many borrowers can’t afford the loan and the fees, so they end

up repeatedly paying even more fees to delay having to pay back the loan, “rolling
over” or refinancing the debt until they end up paying more in fees than the amount

they borrowed in the first place.” According to creditkarma, “Say you get a two-

week $500 loan that charges $15 in fees for every $100 you borrow. Expressed as

an annual percentage rate, that works out to an APR of almost 400%.” This

concludes that one would typically need to repay a payday loan within 2 to 4

weeks of the original loan. Senators, let’s be honest… this is worse then Trump

seeming like he’s high on Twitter (With all due respect).

And Finally, Senators, limited financial flexibility. The added expense of interest

and fees can subsequently require additional loans to make ends meet. According

to Regina Blackwell of Transforming .“Payday loans encourage a cycle of debt

thanks to high rates of interest, as well as high repayment installments whichiIn

most cases, the client will be unable to repay the debt by the due date. What

happens next? Another costly loan is secured to cover the difference.” According

to selflender.com “These types of loans also come with lender-favorable terms.

Borrowers who fail to read all the fine print can find themselves at a disadvantage

should the arrangement go awry. For their part, lenders can pursue all legal

options, including collection tactics, to get their money.”

Senators, we cannot allow more people to fall into the traps of financial instability.

We cannot allow this to continue…

Which is why for the following reasons I’ve given you today I urge you to vote in

negation/affirmation of Senator _______________’s legislation for the following

three reasons: one, high-interest rates, two, they will 100% affect your credit

ratings, and three, limited financial flexibility.