Apr 17, 2017 / 04:10 pm
In 2015, Shannon found herself swimming in debt from a title loan. She faithfully made the $200 monthly payments. Unfortunately, the entire $200 went to interest.
“I kept paying the interest on it and wasn’t getting anywhere,” she said.
None of it went to pay down the original $900 loan.
“The first time I took a loan out, I was behind on rent,” Shannon said. “Then something else came up and it got out of control. I could never see getting myself out of the hole. I thought the loan would be a burden that would be over me forever.”
The Kansas Loan Pool Project, which began in 2013, has assisted 127 people get out of predatory debt. The program is a collaboration with Sunflower Bank in which the predatory debt is refinanced into a traditional loan. In all, more than $80,000 worth of debt has been refinanced through the program. …
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