Here’s a story from Mississippi about a new payday lending alternative.  The Payday Pundit thinks this is great.  The more choices consumers have when it comes to short-term financial products, the better!  However, because you’ve come up with an alternative doesn’t mean you should replace existing products.  Let the market work and let consumers choose which product they like better.  There is one thing in this announcement that makes this pundit think that this new loan will not replace payday loans outright:

There are no fees to participate in the BankPlus program, but a credit check is required, and the credit score affects the loan amount for which a customer is approved. Customers also must complete a financial literacy program before they receive the loan and they receive credit counseling once they are approved

One reason people take out payday loans is because there is no credit check required.  Imagine if you’re a busy person and need money today, something tells me you won’t have time to receive credit counseling before you need the money.

Last night on PBS, Frontline re-ran a program called: Secret History of the Credit Card. The show highlighted some facts about credit cards that make the criticisms about payday lending look like child’s play. 

What Payday Pundit found particularly interesting is that by paying only the minimum balance every month, it could take you 35 years to pay it off in full!

Also of note was the fine print found on all of the credit card agreements. The fine print is in stark contrast to the fees displayed on posters in large type in all CFSA member company payday lending stores. 

For consumers, Frontline lists ”8 Important Things a Credit Card User Should Know.”

It’s ironic that so-called consumer activists would advocate that credit card cash advances are a better option than payday loans.

Apparently, they were big into  installment loans.   That interesting fact as well as the entire, fascinating History of Credit is found here.   The Payday Pundit loved this sentence:

From 1853 we read, “Credit is one of the beneficent fruits of Christian civilization, and, though itself an effect, is in turn a most powerful agent in developing the resources of nations and accelerating their progress.