Payday loans give borrowers money in exchange for a check that is cashed on their next payday. Instead of having that check cashed, borrowers can pay the interest and roll the loan over to the next pay period.
Clark said his payday loans ballooned as fees and interest accumulated when he renewed loans repeatedly. He managed to pay off the debt. But this month, he had to take out two more payday loans totaling over $1,000. He hopes to pay that off by Feb. 1.
“You wind up where you’ve got more bills than money, so you end up going back and getting more,” Clark said.
Nixon supported tougher payday loan regulations as attorney general, but those bills repeatedly died in the Missouri Legislature — often not even making it out of a committee. He’s hoping to use his greater bully pulpit as governor to advance a bill this year.
But Nixon also has made job creation a priority, something which payday loan officials contend would be hampered by the proposed restrictions on their industry.
source here.
