Six Myths of Payday Lending

By Alex Mikulich, P.h.D.

In Shakespeare's Hamlet, Polonius instructs his son Laertes: "Neither a borrower nor lender be, for loan oft loses both itself and friend, and borrowing dulls the edge of husbandry." The wisdom in Shakespeare's time was that too often one would lose both money and friend through borrowing or lending. Even worse, borrowing or lending would dull one's ability to make a living (husbandry). Ultimately, Polonius instructs his son: "To thy own self be true."

Shakespeare's wisdom endures in the case of predatory lending. Although payday lenders advertise as if they were friends in your moment of need, payday loans throw most borrowers into a cycle of debt, dulling their ability to make a living. 

The payday loan industry thrives upon a web of myths. MORE>>