The Payday Loan Cycle
The Payday Loan Cycle
— Receive access to exclusive information, benefits and discounts See also: One of the major draws of payday loans is their convenience and ease, most people with a valid checking account can acquire them. Their simplicity has made it possible for close to 19 million American households to use this service annually, spending more than 7 billion dollars solely on fees. Industry representatives claim that their regulated service is a good way to get money in unforeseen circumstances, and that millions of people use payday loans annually to great satisfaction. Critics of the practice point out that the debt-trap structure of the loan makes it impossible to pay back in a timely fashion, with most customers being in increasing debt for more than six months. The practice is so controversial that many . This episode of Inside E Street features , president of the , and Jamie Fulmer, vice president of Public Affairs for . They hold a panel discussion with Lark McCarthy regarding the current use of payday loans. Also joining Inside E Street is Arizona House Rep. , who helped prohibit the use of payday loans in her state.
Savings, resources and news for your well-being Visit the every day for great deals and personal finance tips
Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures
The Payday Loan Cycle
Are these short-term easy-to-get loans an effective consumer service or a debt trap
were established as a quick way to obtain a loan between paychecks. In theory, a customer could take out a loan and pay it back, with an added fee, by the time his or her next paycheck arrived, usually within two weeks. However, some customers and opponents claim that in reality, the use of payday loans has become a form of legal loan sharking, with the lending companies hoping to keep their consumers in debt.Related
— Receive access to exclusive information, benefits and discounts See also: One of the major draws of payday loans is their convenience and ease, most people with a valid checking account can acquire them. Their simplicity has made it possible for close to 19 million American households to use this service annually, spending more than 7 billion dollars solely on fees. Industry representatives claim that their regulated service is a good way to get money in unforeseen circumstances, and that millions of people use payday loans annually to great satisfaction. Critics of the practice point out that the debt-trap structure of the loan makes it impossible to pay back in a timely fashion, with most customers being in increasing debt for more than six months. The practice is so controversial that many . This episode of Inside E Street features , president of the , and Jamie Fulmer, vice president of Public Affairs for . They hold a panel discussion with Lark McCarthy regarding the current use of payday loans. Also joining Inside E Street is Arizona House Rep. , who helped prohibit the use of payday loans in her state.
You May Also Like
Savings, resources and news for your well-being Visit the every day for great deals and personal finance tips
Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures