Alert
Close

Chat retirement strategies with AARP’s Jean Setzfand today, Oct. 24th, at 2:00 p.m. ET

Highlights

Open

You and Your Town Contest-You could win an AARP RealPad

AARP Auto Buying Program

Contests and
Sweeps

$10,000 Winter Escapes Sweepstakes

Beat the cold and cozy up to a chance of winning $10,000! See official rules.

Driver Safety

Piggy bank on the road - AARP Driver Safety

Take the new AARP Smart Driver Course!

AARP Books

Visit the Money Section

Enjoy titles on retirement, Social Security, and becoming debt-free.

Jobs You Might Like

most popular
articles

Viewed

Financial Regulatory Reform

Payday Loans to Get Scrutiny

Legislation allows federal regulation of providers for the first time

Nancy Oliver, 56, turned to a payday loan as a temporary fix a couple years back when medical bills piled up. She never imagined that her cash flow problem would still be plaguing her years later.

But today, the single mom owes $4,450 spread across four payday loan companies and her cycle of debt is not likely to stop anytime soon. That's because each company has specific requirements for payment of the loan principal that make payoff prohibitive. In one case, for example, Oliver must pay in $50 increments.

That's a tall order for the special education teacher who's living paycheck to paycheck. Instead, Oliver routinely pays $800 a month on interest alone and continually rolls over the loans.

Nancy Oliver

Nancy Oliver — Blake Gordon/Aurora Photos

"I thought it was going to be a temporary" bandage, says Oliver of Providence Village, Texas, about the payday loans. But "I don't see how it's ever going to get sorted out."

Oliver's experience is far from unique, says Irene Leech, who has long watched the payday loan industry as an associate professor of consumer studies at Virginia Tech and a past president of the Consumer Federation of America.

"They tend to be a very expensive way to borrow money and they tend to suck you into a cycle of debt," Leech says of payday loans. "People often just end up with more problems instead of solving the problem that they had."

Topic Alerts

You can get weekly email alerts on the topics below. Just click “Follow.”

Manage Alerts

Processing

Please wait...

progress bar, please wait

Tell Us WhatYou Think

Please leave your comment below.

The Cheap Life

Jeff Yeager Cheap Life Ultimate Cheapskate AARP YouTube web series save money

Catch the latest episode of The Cheap Life starring Jeff Yeager, AARP's Ultimate Cheapskate. Watch

Discounts & Benefits

From companies that meet the high standards of service and quality set by AARP.

Life insurance: you are covered rain or shine

Exclusive annuities for members from AARP Lifetime Income Program from New York Life.

AARP Credit card from Chase

Members can get cash back rewards on purchases with the AARP® Credit Card from Chase.

Homeowners Insurance
Member Benefits

Join or renew today! AARP members receive exclusive member benefits & affect social change.

Rewards for Good

Your Points Balance:

Learn More

Earn points for completing free online activities designed to enrich your life.

Find more ways to earn points

Redeem your points to save on merchandise, travel, and more.

Find more ways to redeem points