Clemson University recently concluded and published a study regarding payday loans in which they found that payday loans are not a contributor to bankruptcy. They performed all kinds of statistical analysis to come to this determination.

The study was lead by Dr. Petru S. Stojanovici and Prof. Michale T. Maloney. The rest of the findings from the study can be read here.

The results of this academic research are not surprising to those of us in the payday loan industry. Payday loans are often the only access consumers have to short-term credit. Payday lenders are often accused of being "loan sharks" because of their high rates. But the truth is that these rates are off-set by the incredibly short term of the loan.

Perhaps the greatest impact of this study can be its impact on legislators and policy makers. Often these individuals are influence by lobbyists and special interest groups to ban payday loans outright. Maybe the facts can speak louder than the rhetoric.

Payday loans can be a valuable option to those who need cash fast. Always borrow responsibly.