Quote:The issue is that your average pay day loan customer is going to have to take out another pay day loan to pay off their first loan.  Because they're truly desperate in the first place.  Unless they're going to be coming into a new source of income soon, they're going to not be able to pay back the money they owed because they're still paying for the things they borrowed for in the first place.  And they set it up so it's easy to get pretty far into debt.

 

My wife and I were pretty desperate at one point.  After we had our first set of kids.  She lost her job, and we had all kinds of bills.  We were fortunate enough not to have to take out a pay day loan because we had a friend who loaned us the money we needed (and let us pay it back when we could).  It took us a while to be able to pay her back because we were in a truly desperate situation.  Had we taken out a pay day loan, we'd have probably had to take out another one, and then another one, and another one until my wife finally was able to finish college.    It's not like we hadn't saved or prepared.  It was that unexpected things came up, and came up at the worst possible time.  Some people end up in an endless cycle of pay day loans because of that.  


They have their places, but they should be subject to regulations that prevent predatory lending.  

 

I hear you, I've been there, at one point we where stuck in the $500 every other week we owed $555. I don't blame the company though it wasn't anyone's fault we just had more bills then money. I just don't consider it predatory lending, they're upfront on the cost and how much you're paying, for the people using them (myself included for a long time) it's a decision of taking the loan or not paying something. the real solution is helping people out of poverty not punishing the people offering them services.

 

Predatory loans to me are more like the housing loans people where given with the 2 year ARMS and Balloon payments prior to 2008, or any of the "creative" loans before the housing crash.

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