Debt is an important aspect of American life, but economic theory diverges on the consequences of credit access to human well-being. Economist Christine Dobridge specifically looks at the impact of payday loans – small, short-term, high-interest loans – on US households in this brief but informative study. Should these loans, which some critics consider predatory lending, face stringent regulation or prohibition? Or do they actually serve a useful purpose that justifies allowing people access to them? getAbstract recommends this astute report to policy makers and financial services professionals for its insights into the payday lending market.
In this summary, you will learn
- How payday lending works,
- How it affects the financial well-being of borrowers and
- Whether regulators’ concerns about payday loans are justified.
About the Author
Christine L. Dobridge is an economist with the Federal Reserve System.