Lawmakers in Virginia, Kentucky and Colorado are considering tightening up the way payday lending institutions conduct business. These short term loans are designed to help people make ends meet between paychecks, but the interest rates they carry can veer upwards to 400%. As a result, many people get sucked into a vortex of never-ending debt.
Lisa Engelkins found herself needing money all the time in 1998. She was a single mom making $7 an hour at one of her jobs, and it just wasn't enough. So she went to a payday lender and before she knew it, was trapped paying off the same loan for nearly 2 years. She eventually clawed her way out of debt and is now a credit and housing counselor in Winston-Salem, NC.
Alba Onofrio
Yet the issue may be more complex than some observers think. Alba Onofrio used to authorize the kinds of loans people like Lisa needed. While Alba didn't like the fact that such loans can overburden people, she makes the point to Dick Gordon that some people have no other option, and that imperfect help is arguably better than none at all.