Upcoming legislation will not fix the problem that is underlying of loans: deficiencies in use of credit.

Lenny Ignelzi / AP

Industry for fast, tiny loans is definitely insufficient. Because banking institutions would prefer to provide $50,000 than $500, and have a tendency to require strong credit records to borrow after all, your options for families which are down and away, or a bit behind to their bills, are restricted. That’s where payday loan providers come in. The high interest rates coupled with the low incomes common among their clients can create a cycle of indebtedness far worse than the financial troubles that force families to seek out such loans in the first place while they might seem like a quick fix.