How Payday Loans Actually Make Money?

A payday loan is sold as a two-week bridge to your next paycheck, so why does most of the money come from people still borrowing months later? This documentary follows one $300 check across a payday counter. It shows how the balloon payment and the lender's first claim on your paycheck turn a single loan into a sequence. It also covers the Scott Tucker case and the federal rule that both regulators and lenders expected to wipe out most of the industry's revenue. Then it shows why the price on the sign tends to sit exactly at your state's legal limit. If you've ever wondered how a payday loan company makes money, what the payday lending business model really depends on, what payday lender profit margins look like once storefront costs are counted, or whether a payday loan store is profitable at all, this is the full breakdown. It draws on state regulator filings, CFPB research, court records and peer-reviewed economics. #PaydayLoans #BusinessModel #HowItMakesMoney #PersonalFinance #Economics