A 2016 research by Christine Dobridge of this Federal Reserve illustrates the paradox:

Payday advances are immediate, short-term cash advances against someone’s paycheck that is next. They are able to assist in emergencies, but could additionally keep borrowers indebted for decades. They target individuals without bank cards — frequently people that have the worst credit — and charge these riskiest borrowers greater rates of interest. Annualized prices are … Continued