Estimates of payday loan volume vary between $28 billion and $40 billion per year with consumers paying between $4 billion and $8 billion in fees each year for a loan that generally lasts two weeks. Despite its expensive costs, the industry has experienced exponential growth since 1990. Are credit union members using payday lenders? Research says they are and in larger numbers than anticipated.It’s estimated that 10% to20%of credit union members choose to use a payday lender for their short-term cash needs. Whereas many of these members may qualify for the credit union’s better- rate personal loan, many credit unions either won’t make loans for less than $500, or if available, don’t advertise such loans. And many credit union members/consumers admit they don’t trust themselves with a $500 or $1,000 line-of-credit. The temptation to use it for wants –not needs –can be overwhelming and costly. The result can be another loan payment when living paycheck to paycheck is already tenuous.

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