A new study from the Center For Economically Solving Poverty (CFESP) shows that payday loans save millions of Americans each year from financial ruin. Payday loans are often attacked by lefties who claim that they are predatory in nature and only serve to extract wealth from the lower class when they are desperate. Nothing could be further from the truth.
Many do not know this, but I used to work at a Payday Loan shop and I saw firsthand how many lives we saved by providing this crucial financial lifeline. There were some customers who would come in every month or even every two weeks and it made my heart smile knowing that my work was perhaps helping someone put food on the table for their kids.
Eliminating usury laws, which limit the amount of interest that can be charged on a loan, would only allow for more people to receive the crucial help that they need. Many think that providing “high” interest rate loans to poor people is immoral. What they fail to realize is that the people who seek out payday loans have immediate short-term liabilities and needs that have to be solved. And I’m immensely proud to have played a part in helping the most financially vulnerable among us.
Think about how many more people will be able to put food on the table if usury laws are eliminated. The interest rate charged by companies is merely a reflection of the mathematically calculated risk they are incurring by loaning money to help people. The higher the interest rate, the more people we can help. And what’s wrong with that?