While a payday loan may seem appealing to people who are in need of cash fast, consumer advocates are trying to encourage alternatives.

The Consumer Federation of America (CFA), a non-profit association of 300 pro-consumer groups, doesn't see the benefits of payday loans. The small cash advances secured by a borrower's personal check and due in full on the borrower's next payday just result in financial danger, according to the Elmira (N.Y.) Star-Gazette.

In May, the CFA created a website, paydayloaninfo.org, to help consumers learn more about these loans. The site features facts about how the payday loan process works, as well as industry information, the legal status of payday advance lending, and relevant state laws.

On the site, an interested consumer can calculate the cost of using online payday loans by entering the dollars borrowed, fees charged, and length of the loan. A visitor to the site can also see the impact of not repaying the advance on time by entering the number of renewals or rollovers used during the course of a year, the consumer group's news release states.

"Consumers may be shocked to find out how expensive it is to use payday loans," said Jean Ann Fox, CFA's Director of Consumer Protection, in the release. "CFA's paydayloaninfo.org webite provides consumer-oriented advice and information to help protect borrowers against becoming trapped in high-cost, high-risk payday lending."

Visitors can click on their state to connect with state regulators to file complaints and/or get more information about cash advance loans.

It's not an ideal time to be a consumer. Inflation registered another sizable increase in May, pushed higher by soaring gasoline prices. More and more individuals will soon be turning to online payday loans in order to deal with such difficulties.

Most worrisome of all is the following: there's further evidence that the jump in energy costs is beginning to cause even more widespread inflation troubles. The Labor Department reported Wednesday that its Consumer Price Index posted a 0.4 percent increase in May after an even bigger 0.6 percent rise in April. Gasoline prices jumped by 4.9 percent and have been soaring this year at an annual rate of 69.4 percent.

It seems like a cruel joke, but people may soon need a payday loan in order to afford a full tank.

Excluding energy and food, core inflation rose by a larger-than-expected 0.3 percent. That increase is certain to get attention at the Federal Reserve, where Chairman Ben Bernanke last week called a recent uptick in core inflation rates "unwelcome." Investors, meanwhile, are concerned that the Fed will raise rates for a 17th time at its next meeting on June 28-29, increasing risks that the hoped-for soft landing for the economy will instead be a more severe slowdown.

While most American households do well when it comes to money management, lower-income families — which generally have less of a financial cushion to deal with unexpected problems — face many challenges, Federal Reserve Chairman Ben Bernanke said Tuesday.

Bernanke observed that families are coping with higher borrowing costs and lofty energy prices in these times.

In addition, U.S. consumers must deal with an array of increasingly complex financial products that seem bewildering when it comes to making smart financial decisions.

"U.S. households overall have been managing their personal finances well. On average, consumer debt burdens appear to be at manageable levels and delinquency rates on personal loans and home loans have been low," Bernanke noted.

The lower-income bracket Bernanke speaks of is the target of payday loan firms, critics of the industry are quick to point out.

While most U.S. households are juggling their financial obligations well, families with lower incomes face greater difficulties with credit card debt, medical bills and more.

"These families generally have less of a cushion to absorb unanticipated expenses or to deal with adverse circumstances, such as the loss of employment or a serious health problem," Bernanke said.

Low income families are significantly less likely to have a checking or savings accounts. Families on the low end of the income spectrum are also were less able than others to manage their debts.

Financial education, encouraging savings and investment, community economic development initiatives and other things can help families of modest means build assets and improve their economic well-being, rather than relying on a payday advance service and other short-term, quick-fix methods of getting by.

Bernanke urged the promotion of financial literacy in schools.

"I served six years on the local school board and one of the issues I was always pressing was to get more economics into the curriculum, including financial literacy. It was always a push," Bernanke recalled.

The Conservative Canadian government is preparing to introduce legislation that would finally rein in the nation's ballooning payday lending industry.

If the government's efforts are successful, it will be delegating power to Canada's individual provinces to regulate payday advance loans and protect consumers from the financial pitfalls.

Justice Minister Vic Toews and Industry Minister Maxime Bernier are working hard, senior sources report, to introduce amendments to the Criminal Code. If at all possible, the proposed reforms will be in place by the end of the spring session of Parliament.

The bill would address concerns of citizens and consumer advocates that some firms in Canada offering short term payday loans are charging exorbitant rates of interest to consumers. Sometimes the loans entail interest of hundreds of percent each year.

The Calgary Sun reports that the payday loan industry itself has been lobbying to be regulated in order to eliminate the so-called bad apples, while allowing reasonable short-term rates. Right now, the Criminal Code sets a 60 percent annual interest rate cap on the financial sector, a bar that doesn't include instant payday loans.

To date, only one lender has been charged with violating that limit, but throughout the enormous nation, calls for payday loan reform have gained traction in recent weeks. The controversy will undoubtedly continue until this issue is resolved. We will follow this planned legislation with a great level of interest.

Channel 10 News in California is joining the payday loan reform brigade. A recent editoral from the station expresses the following:

People should be protected from military payday loan predators. Everybody talks about it: these families deserve our appreciation for the sacrifices they make for the rest of us. Even putting their lives at risk in dangerous places abroad.

But some armed forces leaders say there's a big danger right here at home. High-interest military payday loans - charging up to 459 percent interest here in California - that target our young men and women in uniform. Many of these centers are located near military bases. About 20 close by the gates of Camp Pendleton.

10News says its time to crack down on these loathsome faxless payday loan sharks who take aim at our military personnel.

We urge the hearings led by State Senator Liz Figueroa to put California in the company of states like New York and North Carolina. Pass a legal cap on the amount of interest to be paid or ban these payday loans altogether.

On one hand, alternatives to military payday loans are hitting the market. On the other, at least one company is now offering a unique guarantee on such cash advances:

Pioneer Services, a leading financial services provider to members of the U.S. Armed Forces, is offering service members a 15-day, no-questions-asked return on all its payday loan offerings. The company, meanwhile, is challenging other payday loan lenders that serve military personnel to provide a similar guarantee this summer.

"If the financial services community really wants to provide service members with the best lending options available, they should stand behind their product with a 100 percent guarantee like Pioneer Services," said Joe Freeman, chief strategy officer.

In today's military payday loan lending market, this service appears to provide a responsible alternative to payday loans, pawnshops and other predatory institutions by helping service members obtain traditional consumer installment loans, which are similar to loans offered at local banks or credit unions. These loans have fixed rates, monthly payments, credit card comparable APR rates, and all costs are disclosed.

Unlike banks and credit unions, however, Pioneer Services also offers their Military Payday Loan Guarantee.

"We encourage our customers to review their loans with a financial advisor, their chain of command, or even another financial institution," said Freeman. "If they find a better deal within 15 days, or if they decide they don't need the money, they can cancel their loan at absolutely no cost."

During these controversial times surrounding military payday loans, this is a a great idea.

Are you struggling with credit card debt and wondering whether or not a payday loan would provide assistance? You are FAR from alone.

The average household in possession of at least one credit card has doubled its balances in the last decade. According to Cardweb.com, credit card debt per household reached $9,312 in 2004, the latest year for which statistics are available. Moreover, the total national balance is $665 billion. No wonder the popularity of faxless payday loans has been on the rise!

Figures from the American Bankers Association showed 4.81 percent of all accounts were 30 days past due last summer. As a result, many people have simply sworn off credit cards.

“I had a bunch of credit card debt when I was in college,” said insurance agent Evan Glassman, 27, who lives in Delray Beach, FL. His balance hit about $14,000. “It took me a little while to get rid of it. But I can think of a lot smarter things to do with my money.”

While Glassman did not mention the use of any cheap payday loans to finally become debt free, other consumers have taken this step.

The protest against payday loan lenders in Witchita took an odd turn on Saturday. Organized by Sunflower Community Action - and meant to speed up regulations against dangerous payday loans in the state - those who came out in support of these resources were not allowed to voice their views.

Over 300 people were paid $100 by Kenneth Wayco, president of Select Management Resources (which owns LoanMax and other cash loan services), to express positive online payday loan opinions - at the meeting, however, they weren't allowed to actually express them.

After Sunflower officials told Wayco the agenda didn't allow for comments from the crowd, he left the meeting with his clients. Afterward, he said that Sunflower's action amounts to saying his consumer don't deserve credit from payday loan lenders.

"What they want to do is draw the line between people who are deserving and those that aren't," he said.

Sunflower called the meeting at Tabernacle Baptist Church to warn the public about the pitfalls of payday loans and title car loans. The docket included comments from people who have struggled to repay such payday advances. Conversely, however, Floyd Pickett was angry he didn't get to speak about how title loans helped him.

"If you don't have any money, they (banks) won't let you borrow," he said. "No one was going to help me. As long as I pay them (title loans) on time, it's all right."

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As controvery continues to swirl in Kansas - and protests over payday loans even take place - it's important to take a look at the pros and cons of such cash advances. 

As payday loan stores pop up all over the state, there's been a surge in debt for its citizens. Coincidence? No way,  says Marcia Collins.

“We see people almost everyday that are in trouble with payday loans,” said the consumer credit counselor.

The reason for this proliferation of problems? The cash loans have high interest rates, which make it very tough for borrowers to fully replay the payday loan when it's due.

Of course, those who work in the quick payday loan industry said they are most often used by people with legitimate emergencies, such as needed medicine for a sick child or necessary car repairs.

“I think it's the lesser of two evils for most people,” said Dennis Stein of Pawn Marketing, Inc.

Stein, who runs a pawn shop that also offers fast payday loans, said the only alternative for many people is to write a bad check and then face an even more severe penalty from their bank. If regulations make it too difficult for payday loan companies to operate, people may turn to the Internet, where it's easy to find a site that offers the service.

Over at Consumer Credit, though, the counselors hold out hope that people will educate themselves on the perils of payday loans and have a back up plan for those last minute money emergencies.

Wichita advocate group Sunflower Community Action hosted Friday’s conference regarding the issue, where politicians, residents and city leaders met to discuss possible future faxless payday loan regulations.

"The rich rule over the poor and the borrower is servant to the lender." Anyone who has ever been in debt has experienced the truth of that proverb, writes James L. Evans in the Decatur (Ala.) Daily. In Alabama and across the country, debt is something we know about.

According to the Federal Reserve, Americans are dealing with more than $2 trillion in personal debt, and that figure does not include home loans. Of this amount, more than $800 billion is credit card debt, with an average interest rate of 18.9 percent.

A survey conducted by Visa found that 48 percent of credit card owners only pay the minimum monthly payment. On a balance of $3,900 with a 18.9 APR, it would take 36 years to pay off the balance making only the minimum payment. The cardholder would pay $10,000 in interest to go debt free.

Therefore, it's hardly shocking that in 2005, more than 2 million Americans filed bankruptcy to seek debt relief.

It gets worse, too. The ugly side of debt that these numbers do not reveal come from the payday loan industry. Customers seeking payday loans in Alabama, for the most part, are unable to secure credit from banks, traditional loan firms or even their credit cards.

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