The Cycle Caught Me
I came across your listserv posting regarding predatory lending. You mentioned that you were looking for individuals who had fallen victim to the payday lending cycle. I am one of those individuals. I have fallen into the cycle twice and both times swore I would never do it again. I am currently trying to work my way out of the cycle. Each time I try to get less money. Sometimes I'm just not able to meet that goal, and I end up getting the same amount two, three, or four times before I am able to afford to "lose" another $50 in addition to the fees I have to pay. Unfortunately, these businesses seem to offer an easy "fix" to the consumer who lives from paycheck to paycheck and has no savings to cover unexpected expenses or emergencies. The problem is it sends the consumer into a downward spiral that is very difficult to climb out of. The organization I deal with has instituted a policy where after a certain number of loans (13 or 14 I think) you can't take out another loan for another 24 hours. This can be devastating because you learn to depend on getting the money back that you just gave them.
I would be interested in learning more about the alternative financial services and credit counseling available. Sometimes it just seems like there is nowhere to go. An important point I would like to make is that there is no stereotype of your "typical" person who falls into this trap. I would probably seem like the least likely person to be caught in this cycle, but it can happen to anyone. It is terribly embarrassing and I hate doing it every time I get paid. But unfortunately it is like an addiction--I can't quit "cold turkey" otherwise the rent goes unpaid or my family lives on peanut butter and jelly or the food stores from my church for two weeks.