After reading a few articles on the payday loan business, I came to the conclusion that these guys as well as the big credit card companies need to be avoided.

If you write a postdated check for $300 you get $255 in cash with the payday lender taking the difference in profit. That translates to a 450% interest rate!

The article checked out some stats and mentioned that there are 13,700 McDonalds in the U. S. There are more than 22,000 payday lenders in the U.S. Business is good for them. The statistics show that 90% of the borrowers roll over their loans at least once. The Institute for Responsible Lending ( a consumer advocacy group) says that to pay back a $325 loan, the average payday loan borrower pays back $793! Now that’s highway robbery.