Payday lenders now outnumber McDonald’s restaurants in the United States, according to the Federal Reserve.
The lenders offer small loans at high interest rates. A typical $300 loan comes with a $45 finance charge for two weeks. Most of the loans are rolled over.
A LifeWay Research survey of Christians in 30 states found most are skeptical of such loans. Still, 17 percent of Christians say they have taken a payday loan in a time of need.
Among LifeWay’s findings:
- 86% say the government should protect borrowers
- 57% say loans should be capped at 18% interest or less
- 6% say their church has a plan to help those with payday loans
For more on the study, read the full story: “Christians See Predatory Loans as Sinful.”