Payday Loans Cost the Economy

I expect most readers of this blog know that payday loans are toxic for consumers; unfortunately our legislators are more heavily influenced by industry lobbyists than research. Perhaps this data on the negative impact on the economy will hold some weight. “Payday loans cost the U.S. economy nearly $1 billion and thousands of jobs in 2011, according to a report from the Insight Center for Community Economic Development.”

“The study says that the burden of repaying the loans resulted in $774 million in lost consumer spending and 14,000 job losses. Bankruptcies related to payday loans numbered 56,230, taking an additional $169 million out of the economy.”  Read more at: http://www.cnbc.com/id/100701516