Tracking the Payday – Loan Industry’s Ties to Academic analysis
Our current Freakonomics broadcast episode Are payday advances actually as wicked as People Say? explores the arguments pros and cons payday financing, that offers short-term, high-interest loans, typically marketed to and utilized by individuals with low incomes. Pay day loans attended under close scrutiny by consumer-advocate teams and politicians, including President Obama, whom state these lending options add up to a type of predatory financing that traps borrowers with debt for durations far longer than advertised.
The loan that is payday disagrees. It contends that numerous borrowers without acce to more traditional types of credit be determined by payday advances being a lifeline that is financial and that the high interest levels that lenders charge in the shape of charges — the industry average is about $15 per $100 borrowed — are eential to addressing their expenses.