Upcoming regulation will not fix the underlying issue of payday loans: deficiencies in usage of credit.
Lenny Ignelzi / AP
The marketplace for fast, tiny loans is certainly insufficient. Because banking institutions prefer to lend $50,000 than $500, and have a tendency to require strong credit histories to borrow after all, the choices for families which can be down and away, or even a bit behind to their bills, are restricted. ThatвЂ™s where lenders that are payday in. The high interest rates coupled with the low incomes common among their clients can create a cycle of indebtedness far worse than the financial troubles that force families to seek out such loans in the first place while they might seem like a quick fix. Läs mer