'A drug': Millions hooked on payday loans

http://inplainsight.nbcnews.com/_news/2013/05/06/18088751-like-a-drug-payday-loan-users-hooked-on-quick-cash-cycle?lite

Twelve million Americans take these types of high-interest, short-term loans annually. Most don’t have the cash to cover regular expenses and can’t turn to credit cards to cover a shortfall. Instead, they turn to what the Federal Deposit Insurance Corporation (FDIC) calls "Alternative Financial Services" — services outside typical banking systems that low-income consumers depend on, such as storefronts that offer check-cashing for people without bank accounts and high-interest payday loans.
 
Payday loans often work like a two-week advance on a paycheck -- as a quick fix, that's fine, but like that cross-country taxi, they turn absurdly expensive for the long haul. Some states ban the loans, while others have placed hard caps on interest rates lenders can charge consumers. However, anyone with an Internet connection can find online avenues to access quick cash.

The consequences can be dire.