How PayDay loans push the middle class deeper into debt-1/2

Usury Country: Payday Loans Pushing Millions of Middle Class Americans Deeper into Debt

Lawmakers and public officials in California, Ohio, South Carolina, Missouri, Washington and other states are attempting to crack down on the controversial practice known as payday lending. Payday loans are short-term loans or cash advances secured by a post-dated check. The annual interest rate for these loans can be as high as 400 percent, ten times the highest credit card rates. Today, its a $40 billion industry with more than 22,000 stores. We speak with journalist Daniel Brook about his Harpers Magazine article, Usury Country," and with Ginna Green of the Center for Responsible Lending.

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News & Politics

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• debt
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• middle
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[Flxiblemetro]

We all got to take responsibility for our own actions. Many payday loan borrowers don't admit they made stupid or risky decisions that cause them to fall behind on their various obligations from rent or mortgage to car notice. And it really has nothing to do with how much money you make or get from the government if you have a disability checks.

[Srd1126]

What on earth does the skin color of the people in the neighborhood have to do with stores locating there? The stores are simply going where the business is. BTW: try to close them down and the neighborhood screams, it is a service they want. Better than a rate cap is to get more of them so they compete.

[royg6852]

I think that we've found installment loans are a much better option than payday loans. We got one from fastcashvegas com and the interest is a whole lot less, and they also give you a longer period to pay back.

[HKTeeVee]

lol y is there footage of McDonalds & Walmart? This report seems pretty insulting to the poor who might want to make our own choices about how we get and spend our money.

[cdltpx]

@cdltpx Other money saving tips are if you can ride a bike to work. If you have a health club membership end it if you can, reduce subscriptions cable magazine anyplace you are hemmoraging cash you have to get a grip until you get that money saved. We all know it is not if we are going to have things happen but when if you don't have the funds you be very sorry you never saved them. Use the internet for ideas to make money or better save by making slight tewaks to your way of purchasing.

[cdltpx]

Save enough money to cover any potential expenses that may crop up. If you live pay check to pay check you need to make some adjustnemts somewhere you have to make changes or you will end up prey to these sharks. If you smoke QUIT if you drink you have to quit or if you eat lunch each day at a burger joint you have to go to sams or anything to get some meal plans and get your money right you have to have min 5K reserve for JIC expense. Collect cans wash cars cut lawns babysit anything you can.

[jesseakers]

Annual= yearly ----- PAYDAY loans are not meant to be paid over years- but weeks!

[dermoni08]

5 years ago those pay day stores were everywhere in rockford Il now there gone nobody pay them back

[KevZen2000]

Wow 400%,sounds about right.I know that if you miss a day it could cost you sometimes $20 a day late fee.