high interest loans

taberandrew via Flickr CC

Small, fast loans often lead to a cycle of ever-deepening debt, according to the Consumer Financial Protection Bureau. Lawmakers in New Mexico are considering whether to regulate the industry here further during the 2021 legislative session. Senate Bill 66 would cap the rates and fees so that they're in line with national averages with the aim of helping people in jeopardy avoid a pit of debt they can't climb out of. KUNM caught up with reporter Jeff Proctor to talk about the effort.

Problems Linger For Borrowers Of Fast Cash

Mar 4, 2015
Ed Williams

High interest, small dollar loans are abundant in New Mexico. Businesses offer quick cash payments for people who need money right away. But the interest rates on these loans can be as high as two thousand percent, and many people are unable to pay them off.   

This is especially true in the state's low-income communities. Statewide, storefront lending businesses outnumber fast food chain restaurants.