Payday Loans Cost Economy $1 Billion in 2011: Study
Mark Koba | Senior Editor, CNBC
The good news is that the payday loan industry appears to be shrinking nationally, as the interest payments in the 33 states that allow these bloodthirsty loans. Payday loans cost the U.S. economy nearly $1 billion and thousands of jobs in 2011, according to a report from the Insight Center for Community Economic Development.
The study says that the burden of repaying the loans resulted in $774 million in lost consumer spending and 14,000 job losses. Bankruptcies related to payday loans numbered 56,230, taking an additional $169 million out of the economy.