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“Picking on payday loans will backfire”

October 26, 2009 | Mississippi, industry, positive media coverage | Comments (0)

Great editorial out of Mississippi:

Here are their options: Pay overdraft bank fees of $40 a check. Miss a credit card payment that triples their interest rate for a year. Miss a utility payment and incur reconnect charges of $50 or more per utility.

Suddenly, the $22 title check fee seems like a smart transaction. Indeed, that option is at least half the cost of the other alternatives.

In fact, the average payday loan customer is 39 years old and makes $41,000 a year. They are making a rational business decision that saves them money.

Many people with decent jobs live paycheck to paycheck. They have families to feed and bills to pay. Most have a budget, albeit tight, that works each month.

But from time to time, the unexpected strikes. A transmission needs replacing. An air-conditioning compressor blows. A medical expense crops up. They are short of cash.

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