Tawana Stewart
“Payday loans are not beneficial in any way, shape or form.”
Former payday loan consumer Tawana Stewart describes her ordeal with payday loans that ended in bankruptcy…
Stewart, who fell ill shortly after starting a new job, took out a payday loan without giving too much thought to the month after:
“I needed $300 to pay for my rent that was getting behind… And so I figured, in a couple of weeks I should be able to have enough money to pay the loan back plus the finance charge. But of course, that didn’t work out that way.”
When she couldn’t repay the initial $300 loan, she decided to jump on the debt treadmill:
“Well the option was given to me… if you can’t pay the $300 back, just give us our finance fee and you can just pay it the next payday. So the cheapest route, you roll it over again and again and again.”
Stewart rolled over loans and took out additional loans for close to one year. Ultimately, she paid $4,000 in interest on roughly $1,500 in loans. It forced her into bankruptcy.
Now, she swears off of payday loans:
“I would have never done this if I would have known it would have taken me to this depth.”
Tawana Stewart is an office manager who lives in Crofton, Maryland.
Sources:
Cashing Out by Neil Adler (Washington Business Journal)
Payday Loans (NBC-4)
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