Payday Loans

Richard Evans, Ph.D., is a Professor of Economics at Brigham Young University. He earned his Ph.D. from the University of Texas at Austin. Any drive through town is guaranteed to cross paths when at least one of the hundreds of payday and title loan establishments that dot city maps across the country. These companies advertise Paycheck advancements that are convenient, quick, without any sort of credit assessment. These advancements are typically loans in the $150-$400 range with a repayment agreement due when the borrower has a scheduled payment, such as a paycheck. But what are the risks associated with these loans and what are the financial dangers the nearly 12 million users face? Dr. Evans shares what he has learned studying the payday loan industry.