Even the Pilgrims needed credit

Apparently, they were big into  installment loans.   That interesting fact as well as the entire, fascinating History of Credit is found here.   The Payday Pundit loved this sentence:
From 1853 we read, “Credit is one of the beneficent fruits of Christian civilization, and, though itself an effect, is in turn a most powerful agent in developing the resources of [...]

Economic Paternalism

 Finding Balance Blog sums up nicely the debate over payday lending:
“The nature of freedom of choice is that some people will misuse their responsibility and hurt themselves in the process. We should do our best to educate them, but without diminishing choice for everyone else.”

Interesting thoughts from U of CO professor

Jeffrey S. Zax, an economics professor at the University of Colorado at Boulder takes a different approach to the debate over payday lending.  In his letter to editor to the Denver Post, he writes, ”Payday lenders’ interest rates seem outrageous. If payday lenders are actually making unconscionable profits, why aren’t other lenders entering the market?” Mr. Zax goes on [...]

Handy chart for comparing fees

  

CREDIT ALTERNATIVE
$100 PAYDAY ADVANCE
$100 OVERDRAFT PROTECTION
CREDIT CARD LATE FEE ON $100 BILL
$100 OFF-SHORE INTERNET PAYDAY ADVANCE
$100 BOUNCED CHECK + NSF/MERCHANT

Fee*
$15.00
$29.00
$37.00
$25.00
$54.87

APR
391%
755%
965%
652%
1431%

Must read op-ed in Denver Post

Terry Kibbe of the Consumers Rights League has a guest piece today in the Denver Post that picks up on recent research by Don Morgan of the NY Federal Reserve. 
Money quote: ”Morgan also questioned the validity of the research from the Center for Responsible Lending saying the Center ‘overstated the number of problem borrowers.’ He noted [...]