Numerous cash-strapped Tennesseans have actually looked to payday advances in a down economy.
But a brand new item called a flex loan is quickly becoming the industry norm.
It is an open-ended credit line with an impressive 279per cent yearly rate of interest.
Tennessee is among the very very very first states where you are able to obtain the brand new flex loans. Like payday advances, these loans likewise have high interest levels.
And even though those within the industry say flex loans are much better than old-fashioned pay day loans, both critics and customers we chatted to say you need to be cautious because flex loans may be tough to pay back.
If you are quick on money, a flex loan might look like the solution.
But also for people like Malia Andrews, it had been the answer that is wrong.
“we pretty approved cash advance much had an entire meltdown when you look at the automobile, ” Andrews recalled, explaining as soon as she knew it could just just just take years to cover down her flex loan.
She explained, “and just like $20 of my re re re payment would definitely the main while the sleep ended up being, like $300, had been going to the rate of interest. “