A 40-year old woman, “Josie” has found herself addicted to borrowing from payday lenders. Over the last five years she averages 5 loans a year. “Josie” learned quickly how to obtain more than one loan at a time through conversations she has had with each payday lender. They would share they did not check with other payday establishments for opened accounts.
“Josie” found herself relying on the loans to help her with monthly living expenses including car insurance, groceries, cigarettes, and to simply have cash on hand. She stated she always has found a way to pay back the loans. “Josie” moved to Frankfort with her daughter and her boyfriend in 2006. Her daughter was working at Wal-Mart and “Josie” was receiving a monthly short-term disability check (diagnosed with multiple sclerosis) from her previous job in Western KY. As her disability checks stopped, her daughter was also fired from Wal-Mart. Without income, they were evicted from their rental home. “Josie” had no place to live and in January 2009, moved into a homeless shelter in Franklin County.
In January, “Josie” borrowed $250.00 from a payday loan. She is to payback $294.00. She shared that she has paid down the loan and has a withstanding balance of $94.00. She recently tried to make a $10.00 payment that they would not accept. The payday lender would not take less than $50.00 and has threatened if she does not pay by the end of the month they will take her to collection.