Foreclosure areas see residents turning to payday loans
What happens in hard-hit areas as people try anything to save their homes from foreclosure? Some will not admit the problem – an actual state of denial. Other are turning to short term loans as high fuel costs and home heating costs eat into what little is left. “We’re hearing from around the country that many folks are buried deep in pay day loan debts as well as struggling with their mortgage payments,” said Uriah King, a policy associate at the Center for Responsible Lending (CRL).
Payday loans may keep the power on for a while, or may provide enough cash to pay $3.50 per gallon for home heating oil, but does it really solve the problem? Absolutely not. If one’s mortgage company strings the poor borrower along for a few weeks or months, that mortgage company can attempt to balance the number of foreclosure over a period of months. However, if the mortgage company is not going to help at all, or if the borrower is still in denial payday loans a going to bury them in a never-ending cycle of more debt.