It is an open-ended credit line with an impressive 279per cent yearly rate of interest.
Tennessee is just one of the very 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.
And even though those who work into the industry say loans that are flex much better than old-fashioned pay day loans, both experts and customers we chatted to say you have got to be careful because flex loans are hard to pay back.
If you are brief on money, a flex loan might appear to be the solution.
However for people like Malia Andrews, it absolutely was the answer that is wrong.
“we almost had a total meltdown into the vehicle, ” Andrews recalled, explaining the minute she noticed it could simply simply take years to cover down her flex loan.
She explained, “and just like $20 of my re re payment would definitely the main and also the remainder had been, like $300, had been going to the interest. “