QoD: Which business has the most physical locations in the U.S.: McDonald's, Payday Lenders or Starbucks?
Hat tip to Beth Tallman for the idea for this question of the day.
Answer: Payday lenders
- Based on this information alone, do you think that payday lending is a good business for the lenders? Explain.
- Payday loans carry interest rates as high as 600%. Why do you think that people continue to borrow from payday lenders despite these interest rates?
- What financial advice would you give to someone who finds themselves taking out payday loans on a frequent basis?
Behind the numbers (from NPR):
MANN: The number of payday loan stores is about the same as the number of McDonald's.
VANEK SMITH: Actually, there are more payday loan stores than McDonald's or Starbucks. There are nearly 18,000 payday loan stores in this country right now.
Want to see what payday loans look like from the vantage point of the lender? Try NGPF's latest game, Shady Sam and find out!