Short-Term, Small-Dollar Lending: Policy Problems and Implications Affordability is an issue surrounding small-dollar financing. The expense connected with small-dollar loans be seemingly greater when compared to longer-term, larger-dollar loans. Additionally, borrowers may belong to financial obligation traps. A financial obligation trap takes place when borrowers whom can be struggling to repay their loans reborrow (roll over) into brand brand brand new loans, incurring extra fees, instead of make progress toward paying down their loans that are initial. 3 whenever individuals…