When I first met Louis he was too deep in debt to afford a car. He got most of his meals from local food banks. He survived on a net monthly income of $170 after making payments on small loans from six different storefront lenders.
His loans ranged from 80% to 240% interest. Every few months, after he paid down some of the debt, the lenders would contact Louis urging him borrow more. Cash strapped, he would refinance his loans - for an additional fee- and the debt would never go away. He was paying $7,200 annual interest and fees on debt that hovered at around $4,000.