This morning on ABC's Good Morning America was a segment on payday loans.
They profiled two different women's stories, both of whom were living on social security and borrowing money from Advance America, the largest payday loan company in the US, to get by.
Unfortunately, neither of them were able to get by at all, but instead were swept up into the oh-so-ugly, downward spiral world of payday lending.
Did you know that most payday lenders charge between 300% - 800% interest?
And that there are only 15 states in the US that prevent payday lenders from charging such outrageous fees?
Hard to believe I know, but it's true... and absolutely absurd!
I have always cautioned consumers to stay away from payday loans. They appear to be a quick and easy solution to cash flow problems, but more often than not, they end up wreaking long-term havoc on your finances.
It pains me to know that in these tight economic times, more and more people are turning to payday lenders for short-term loans they have a hard time finding elsewhere.
Perhaps if there were a more reasonable and widespread alternative to payday loans, there wouldn't be so many consumers desperate for cash being pigeon-holed into a more difficult financial situation as a result of using payday loans.
It doesn't look like GMA posted the video on their site but you can instead read the story "Vicious Cycle: Desperate Americans Turn to Advance America" by clicking here.