I realize that at first glance you would not think that payday loans and taxis have much in common. But the business model is strikingly similar.

Taxis have often been criticized for the extremely high rates. After all, you can ride a bus for a few hours for only a couple of dollars. A quick taxi ride a few blocks goes for $6 or more. Plus your taxi fare is very complicated. Rates change depending on how fast the driver is going. You pay more when they sit in traffic. If you go farther, rates can increase per mile. It is very difficult to figure out.

Why the comparison? Because law restricts the number of taxis that are allowed on the road in any given area. But guess what? The restrictions had nothing to do with “predatory” rates. People wanted to cut down on the noise, traffic and pollution of so many taxis.

Now let us think about payday loans. A payday loan is not meant to take you into financial security for months. It is designed to be a “quick trip around the block” so to speak. Yes, the interest rates are high. But that is because you are not in the taxi for very long. A payday loan is designed to be paid back on your next padyay. That is one month, tops. Usually it is around 14 days.

But look at where the comparison dies. People are not trying to restrict payday lending because there are too many, or because payday lenders ruin the landscape or anything like that. The restrictions placed on payday loans are entirely because of the interest rates. Lack of education is the biggest enemy of payday loans.

How much do you think it would cost to ride a taxi from New York City to Boston? That’s about 220 miles, at about $3.00 per mile….you are looking at over $600! It’s cheaper to fly! Cheaper to ride the train! Cheaper to catch the bus! Quick, we have to ban taxis for this absolute OUTRAGE!

So now people cry and whine saying payday loans cost 391% APR. Well so what? Do you plan on taking out a payday loan for an entire year? Then who cares how much it costs per year! Yet this is the “enlightened” point of view of the supposed “experts” on financial counseling.

Payday loans are short-term loans designed to be paid back quickly and to be borrowed in small amounts. Responsible borrowers have been taking advantage of the quick, easy cash they offer. Let’s not let the irresponsible ones spoil it for everyone else.