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Released: March 07, 2013
Consumers who turn to payday loans may fall into debt traps
Source: Susan Tompor, Detroit Free Press
For someone who can't pay a cell phone bill or the rent, it might seem perfectly reasonable to dish out an extra $42 to get a $300 two-week advance on a paycheck in Michigan. After all, you'd be able to pay the bills, keep your service and avoid extra late fees.
But the real question is can they actually afford to repay the payday loans? Come up with $300 or $500 in just two weeks? Or even in a month? It's not a small issue, especially as regulators examine whether borrowers can afford to repay mortgages and student loans, too.
Read Full Article: Consumers who turn to payday loans may fall into debt traps
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