The dangers of payday loans
With the U.S. economy in a tailspin, more Americans are turning to payday loans to make ends meet. This is unfortunate because these predatory loans often spiral into an endless loop of debt that cannot be easily managed or resolved.
Instead of a consumer taking advantage of a loan offer, payday loans are quite the opposite. Payday lenders often take advantage of the desperation of their customers.
Fortunately, lawmakers have already recognized the financial dangers of payday loans.
Congress has imposed a 36 percent interest cap on post-dated check type loans to military personnel and payday lending has been completely banned in Georgia and North Carolina.