A small loan shouldn’t be a sentence to months or years of deep debt. Everyone who needs to borrow money should have a reasonable pathway to repaying a loan without excessive costs. But in Alabama, high-cost payday loans cost struggling people tens of millions of dollars every year.

As our recent report with Alabama Appleseed shows, the industry profits off financial desperation. Two-week payday loans with annual percentage rates of up to 456% (not a misprint, unfortunately) trap many Alabamians in debt cycles they cannot escape. And Alabama’s lack of consumer protections gives those borrowers no reasonable path out of that debt trap.

There’s a better way. Alabama Arise supports 30 Days to Pay legislation to help the people injured most by these harmful practices. This proposal would give borrowers 30 days to repay payday loans, putting them on a cycle similar to other bills.

This change would make life better for thousands of Alabamians. About one in four Alabama payday borrowers take out more than 12 loans per year. Because the loans are so short in duration – as few as 10 days – these repeat borrowers pay nearly half of all payday loan fees assessed across the state. The 30 Days to Pay plan would give these borrowers a little breathing room to avoid spiraling into deep debt.

We need you with us as we push for common-sense changes to protect borrowers. Please join Arise or renew your membership today to add your voice to our chorus for change. Together, we can build a better Alabama!