The result of Cash Advance Regulations on Financial Well-Being

The result of Cash Advance Regulations on Financial Well-Being

From the theoretical viewpoint, the consequence of access to pay day loans on economic well-being is ambiguous. Neoclassical models declare that customers use pay day loans when they’re better than the available options. Such models mean that limiting access would always make consumers worse off. Having said that, behavioral types of cash advance usage imply present bias, overoptimism, or any other intellectual biases can cause customers to obtain pay day loans even if performing this is suboptimal, as judged by their very own choices. If such models accurately describe behavior, limiting use of payday advances will make consumers best off. Continue reading “The result of Cash Advance Regulations on Financial Well-Being”