Short on cash and without a strong enough credit history to get a bank loan to tide them over, Melissa went to a payday lender, taking out a meager $450. When they weren’t able to pay the debt back in a matter of weeks, the amount ballooned to $1,700 thanks to the high interest rates, fees, and rollover loans (loans that get folded into new, larger loans when a borrower is unable to repay their initial loan). ... With fees and incredibly high interest rates, which can range between 300 and 600 percent when annualized, failure to repay within that short time span can make the debt mount quickly. The Atlantic Magazine.
"The brutal way in which America’s hardest-working folks were forced to internalize the values of a gangster capitalist class continues to elude the left, which, with few exceptions, understands not a thing about how this political and economic system has hammered the humanity of ordinary working people."Joe Bageant, Deer Hunting With Jesus