Lending Circles Help Latinas Pay Bills And Invest

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Cuban-American Barb Mayo describes a tanda like this: "It's like a no-interest loan with your friends." Mayo had never heard of tandas growing up, and it wasn't until she started working in sales for a cable company in Southern California that she was introduced to the concept.

"I worked with a bunch of Mexican women and they were like, 'Hey Barb do you want to do a tanda?' And I was like, 'What is a tanda?' — and they explained it to me."

Here's an example of how a tanda works: Ten friends, family or co-workers get together, and each agrees to give $100 every two weeks to the group's organizer. One person ends up with the whole pot at the end of the month: $2,000. This goes on for 10 months until everyone gets the pot. READ MORE

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