African-Americans, Renters, Divorcees Likely to Use Payday Loans

A new study shows that Americans are using payday lenders for everyday expenses.

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"This negative correlation—reduced payday credit supply, increased credit problems—contradicts the debt trap critique of payday lending," wrote the report's authors.

The bottom line may be that, as states and the nation as a whole consider regulations, they may simply have to ask whether a questionable deal for borrowers is better than no deal at all.

Danielle Kurtzleben is a business and economics reporter for U.S. News & World Report. Connect with her on Twitter at @titonka or via E-mail at dkurtzleben@usnews.com.

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