Transcript:
Dealing with a flooded home is stressful and difficult – especially for people who are struggling financially.
Lucas Belury, a PhD candidate at the University of Arizona, researches flooding in predominantly Latino communities in the Rio Grande Valley. It’s an area prone to flooding – and the problem is growing worse as the climate warms.
He says many residents have limited incomes and lack bank accounts. Some may not qualify for FEMA aid or hesitate to apply – for example, if they lack legal status, or do not have documents proving they own their home.
Belury: “And frankly, there’s, I think, a lot of simply mistrust right now when it comes to these communities and the federal government.”
So to make urgent home repairs or replace a flooded car, people may turn instead to payday loans or car title loans that are easy to get but have very high interest rates.
Belury: “We’re talking sometimes 400% or even 500% interest rates.”
So many people struggle to pay off these loans, and end up deeply in debt.
To help protect people, Belury says Texas could better regulate lenders – for example, by imposing caps on interest rates.
And he says increasing access to trustworthy sources of financial assistance could help reduce people’s reliance on predatory loans.
Reporting credit: Sarah Kennedy / ChavoBart Digital Media
