Payday Loans Are Financially Harming Mississippi Residents, Mayor Says Matt Lillywhite

The mayor of Laurel, Mississippi, is trying to fight back high fees and high interest rates in the payday loan industry. Corresponding Mayor Johnny Magee, payday lenders promised his father quick and cheap cash, but the loans came with triple-digit interest rates and exorbitant fees. And because Some Mississippi residents cannot obtain loans from traditional banksthe mayor claims that they are financially damaged as a result payday lender.

What are Payday Loans?

A payday loan is a form of short-term borrowing in which a lender provides credit at a high interest rate based on your income Investopedia. The principal of the loan is usually a percentage of your next paycheck.

It is important to remember that payday loans often have high interest rates as they are typically used for short-term emergency loans. However acc The guard“Most borrowers use payday loans for basic needs, and the more they borrow, the deeper they go into the hole. Your balance will invariably be converted into a new loan, with each additional round incurring more and more fees.”

Government officials can act quickly

Mayor Johnny Magee wants Laurel’s city employees to take a free financial literacy course to learn how to budget, improve his credit score, and stop relying on payday lenders. “We thought it would be a good way to help citizens who work for the city have a better financial future,” Magee said United States today.

It is worth noting that state governments can enact regulations to cap the interest rate on payday loans. For example, Nebraska capped interest rates on payday loans at 36% CNBC. So many people are hoping that something similar will happen in Mississippi at some point.

What do you think? Leave a comment with your thoughts. And if you think more people should read this article, share it on social media.

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