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But in 2008, amid the economic collapse, the security company scaled back overtime shifts, straining his finances. Worried that he couldnt pay his bills, Tillman reluctantly went to The Money Center, a payday loan company with locations in San Antonio and Houston.
He took out a 500 loan. The 64-year-old Houstonian doesnt recall the exact terms of the loan, but The Money Centers website currently offers a 500 loan at 650 percent annual personal loan market in india 2017, or about 150 in fees and interest for a two-week loan. Such terms are common in Texas, where payday and car title lenders are allowed to charge customers unlimited fees. Like many low-income borrowers, Tillman found he couldnt fully pay off the loan when it came due.
Instead, the lender offered to roll it over for another two weeks and tack on another round of fees. Tillman took on more payday loans to pay off the original loan and soon found himself in deepening debt. And then, in October 2009, he was laid off.
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