Lewis County Herald - Serving Hohenwald, Lewis County Tennessee Since 1898

Between gifts, decorations, family meals and travel, the holiday season is more expensive than ever.

A sizable percentage of Americans take on debt to pay for costs associated with the holidays. That includes those on low incomes, for whom it can be much more difficult to get back on firm financial footing afterward.

The cost of borrowing money has gotten more expensive as inflation concerns have caused the Federal Reserve to raise interest rates. For those with low credit scores, many credit cards are now carrying APRs as high as 25% to 30%.

Even more hazardous are emergency cash loans, which, in addition to an interest rate, have additional fees tacked on that raise their total cost to an exorbitant level.

Here in Tennessee, flex loans have become the dominant form of high-cost lending, representing about 80 percent of the market. One reason is that they’re very fast and accessible, with easy online options. In addition, unlike a traditional loan, they’re essentially an open line of credit, where a consumer might get approved for more money than they request — up to $4,000 in some cases.

Legal Aid Society doesn’t offer counseling on getting out of debt. However, we can protect people from being strong-armed for money that they don’t actually owe. If a client legally swears that they don’t owe a particular debt, we put the burden on the debt collector to prove the loan is valid — which they’re frequently unable to do because they’ve bought that debt in a heavily discounted package from the original lender.

If your debt has gotten out of control, please contact us at 800-238-1443 or visit las.org to see if you might qualify for our free legal services.

Marla Williams is the managing attorney of Legal Aid Society’s Cookeville office.