Arguments Against Payday Loans

Payday loans are the fastest growing method for individuals with limited credit options to obtain quick cash to tide them over until their next paycheck. The popularity of these loans is evidenced by the presence of these centers being more abundant than Starbucks and McDonalds according to Salleh, Jaafar, and Ebrahim (2014). Also cited by these authors is this 38.5 billion dollar industry has been used by over 4 million US households as of a survey taken in 2009. While seemingly a worthwhile service, payday loans provide emergency cash to an age group that is generally described as under 45, with children under the age of 18, and a household income under $50,000. The primary complaint against these loans is regarding the exorbitant interest rates associated with them. Also of interest is that most loans obtained are usually for the payment of regular bills and not for emergency purposes. Salleh et al. (2014) espouse the reasons according to industry participants for the excessive rates are
With regard to international trade, an exporter is cognizant of the fluctuations in exchange rates between his country and the country with whom he is doing business so as not to lose money; this exchange rate uncertainty is known as the foreign exchange risk. The fluctuations in the currency values between countries can affect profitability and cash flow for exporters. Exporters face a foreign exchange risk for many reasons, one of them being transactional; the difference in currency valuation on the date of the sale and the date of payment settlement. To explain further, lag times between invoicing and payment receipt can be between 30 and 90 days depending on negotiated terms according to the Export Council of Australia (2016). Only after a payment is received can the currency be converted and the gain or loss between values