[the invisib1e hand]

Let's take this one step at a time. Whatever the merits or demerits of the rest of the argument, $45 is not going to trap anyone in a never-ending cycle of debt, even if they are making only the bare minimum wage. Personal irresponsibility in managing money can trap anyone, but that is regardless of whether or not they take out payday loans.

Yeah, let's do take this one step at at time: Personal responsibility should prevent anyone from ever falling prey to the "payday loan" come ons. Defending these bastards on the grounds of "capitalism" or anything else is the sort sophistry that causes all the other insanity you like to write about.

Swimming with loansharks is for professionals only.

[MrB]

So, you’d prefer the old days?
You know, where the “loansharks” were really loansharks and not a hyperbolic application of the term,
and they would actually come break your knees for non-payment instead of sending you to collections?

[FreedomPoster]

Late fees on, say, apartment rent or a car loan could easily exceed $45. Taking a payday loan might well be a rational decision given an individual’s financial situation.

[jazusamo]

I believe Dr. Sowell just told it like it is and is not defending anyone but pointing out how the leftist media distorts the issue.

[Bob]

I, for one, appreciate the ability to borrow $100 every three months when my SS check needs to cover five weeks of expenses rather than the usual four. Admittedly, the $15 charge I pay once a quarter is a huge percentage rate but, come on, it's only $15 and is very much worth it to me.

I hate to imagine that the statist nannies (whom you seem to agree with) will get their way and protect me from "the predators". Let me make my own damn decisions.

[cowtowney]

“Personal responsibility should prevent anyone from ever falling prey to the “payday loan” come ons.” You could make that argument about lots of businesses. Who forces people to take out payday loans? I haven’t seen someone going to get one with a gun to their back. Same with pawn shops.

“Defending these bastards on the grounds of “capitalism” or anything else is the sort sophistry that causes all the other insanity you like to write about.” - Really? How would you defend your right to prevent this industry? Smarter than them? Preventer (new word :)) of commerce? what?

“Swimming with loansharks is for professionals only.” - what does this mean? A person making a pay day loan is not as smart as you?

[GeronL]

AT&T wanted $300 when we were late on a payment and the service was turned off, that was on top of the $340 they said we owed already.

Payday Loans are a good idea for those who need them, at least they aren’t going to rip us off like government or AT&T.

[9YearLurker]

Huh? If that $300 is going to save someone a couple or three or four $39 late fee charges, the $45 to have it a few days earlier is worthwhile for both the lender and the borrower.

[arthurus]

These people have to make enough money to make it worth doing the lending in the first place. Deadbeatery is, of course, much more prevalent for this type of loan. It is no more than specialized pawn shops wherein you pawn your pay check indtead of your tools.