Numerous tennesseans that are cash-strapped looked to payday advances in a down economy.
But a new item known as a flex loan is quickly becoming the industry norm.
It really is an open-ended personal credit line with an impressive 279per cent annual interest.
Tennessee is among the very very first states where you are able to obtain the brand new flex loans. These loans also have high interest rates like payday loans.
Even though those within the industry say flex loans are a lot better than old-fashioned pay day loans, both experts and customers we chatted to say you need to be mindful because flex loans could be hard to repay.
If you are brief on money, a flex loan might appear to be the solution.
But also for people like Malia Andrews, it absolutely was the incorrect response.
"we more or less had a total meltdown within the vehicle," Andrews recalled, explaining the minute she knew it can simply just take years to cover down her flex loan.
She explained, "and just like $20 of my re re payment would definitely the key as well as the remainder ended up being, like $300, ended up being going towards the rate of interest."
The single mom said that, if she'd known how much the mortgage would find yourself costing her, she never ever might have taken it down.
Then there is Fort Campbell veteran Joshua Hause.
"Everybody ended up being relocated into a flex loan account -- there is no option," Hause stated.
Hause had two current loans for $925 which he stated a lot more than doubled once they had been changed into a flex loan.