I think this is part of the problem, but a very small part. Its not that these things aren’t taught in public school, they are (or at least *were* when I graduated mid nineties). a bigger part of the problem, IMO, is that kids a.) don’t want to learn this stuff, and b.) its basically all theory to them anyway since most kids finances are handled by their parents, and therefore they learn it about as well as they learn other theory stuff, like American History (in other words, not very well).

I had honors econ when I was a senior in 1994. Did I take advantage of it and really learn how to manage money? No, because I did not have a job and even if I did, I was more concerned at that point in my life with being a smart-ass than learning anything important.

We also had mandatory home-economics in junior high (circa 1990).

I believe some people get drawn into the payday loans under the impression that they will be paid off in a matter of weeks rather than the months to years with most loans and credit cards.

If anyone was wondering here is the link.
http://consumerist.com/consumer/payday-loans/do-payday-loan-centers-target-the-poor-230564.php

Few schools teach financial basics. That hurts everyone and especially those who don’t get money management at home. After spending over 16,000 hours in school kids leave with almost NO sound financial skills. Balancing a checkbook; calculating interest; tracking money in vs money out; understanding loan vs lease vs paying cash. Basic. Did you learn these things in school? If you learned the general skills to do math you probably didn’t get them applied to the real world. (IMHO that’s because teachers never got that infor and the cycle continues) In math class an understanding of the high cost of payday interest would surely make a difference.

Monetary reality. Too many people who need payday loans also think they need a cell phone, bling, or to eat a a fast food joint where one meal costs more than 3 meals made at home. A basic understanding of real need related to money and a way to evaluate the tradeoffs is what’s missing in America. Back to basic financial education – learning how to cook nutritional meals at every price level could also be well taught during those 16,000+ hours kids spend in school.

People need to get real with their finances and get the tools to make it through to financial independance. The Simple Dollar certainly is a great place to get the tools.

It talks about how the lenders will hard sell their product even after the consumer has stated he may not be able to repay the loan.

It also shows how payday lenders evade predatory lending laws.

In southern California especially around LA there are payday type shops everywhere, it almosts equals starbucks. The thing is that you see them mostly in low income or poor sections of the city.

Payday loans attract because they accept almost anyone under any condition. When you’re in a whole, any life line would do. I don’t want to really use this but I cant think of anything better. Payday loans are sorta the easy way out when you’re in a big whole.

It is a consumption issue. There are plenty of reasons why people get into debt. I think if you look into who applies for payday loans, you will be amazed that they aren’t necessarily for emergencies. People simply do not budget and manage their money. There would be far less people, thus payday loan companies, if people managed money better.

As I admited before, I got payday loans before and I wasn’t a low income earner. I was bad at managing my money and that is the reason I got a loan. I had over extended myself to the point I could not get a loan from any bank or creditor except payday loan center. My situation wasn’t an emergency in the beginning or leading up to my debt. It was only an emergency, because I had created it out of bad money management.

Take away these kinds of “safety nets”, then maybe people will think twice about buying that 50″ plasma tv when they can’t afford it.

I’ve met too many people that intended to secure a payday loan as an emergency, one-time event and ended up getting caught in a viscious cycle.

I have learned something about debtors working through my own debt – they want your money. They don’t seem to care if it all comes at once (although they get pushy sometimes), they just care about getting as much as they can without pursuing expensive debt collection. Instead of being embarassed or ashamed when “Unknown Caller” appears on the CallerID, answer it and talk to them – more often than not, they accept what you can give them, and at least note in the account that you are answering the phone and willing to work with them on payment. Like you mentioned, more often than not, they’ll likely want to work with you on making it easier to pay by dropping interest rates, monthly minimum payments or otherwise relaxing payment terms. But if you don’t pick up the phone, they’ll never have the opportunity to work with you.