Kathye Gaines
“We’re seeing people on a regular basis that are caught in the cycle… In order to make this week’s bills, they are borrowing from next week’s money.”
Consumer Credit Counseling Service of Northeastern Iowa Inc.’s Mason City branch office manager Kathye Gaines said that people in over their heads with payday loans make up about 10 percent of her office’s monthly caseload…
According to an article by Peggy Senzarino, Gaines said that people who use payday loans usually have no credit, no credit cards and no family or friends who can help. In some cases, borrowers have multiple payday loans outstanding totalling thousands of dollars. Gaines said:
“They’re just trying to stay afloat.”
Kathye Gaines is the Mason City branch office manager for Consumer Credit Counseling Service of Northeastern Iowa Inc.
Source: Payday Loans have Pitfalls by Peggy Senzarino (The Globe Gazette)
Of course, regular Online Payday Loans readers recognize the cycle of which Gaines speaks - it is the debt treadmill. Borrowers end up on it when they fail to have a concrete survival plan for the the month after.
For more information about pitfalls, please read Ten Payday Loan Pitfalls or browse our Payday Loan Pitfalls category.
If you are considering taking out one of these expensive loans, please consider safer and cheaper payday loan alternatives.
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