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Pay day loan stores now more predominant than McDonald’s and sometimes ‘trap individuals in cycle of debt’

President Barack Obama talks about payday financing and also the economy, Thursday, March 26, 2015, at Lawson State Community university in Birmingham, Ala. (AP Photo/Butch Dill).WASHINGTON The national government is proposing brand new guidelines to control pay day loans, which it states all too often lead consumers into a lengthy “cycle of financial obligation.”

In his week-end radio target, President Barack Obama states the objectives associated with the brand new guidelines are easy: needing loan that is payday to “make certain the debtor are able to afford to pay for it straight right right back.” In Alabama, in which the president visited week that is last he stated “there are four times as numerous payday financing shops as you will find McDonald’s” restaurants. Read the rest of this entry »

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