The problem isn't the lending institution or the interest rate, it is the stupidity of the borrower. Borrowing more than they can pay back, living beyond their means, wasting the money they do have on stupid things (going out, new rims, partying, lottery tickets, etc.) so they leave themselves in a position where they forgot to have money for food, rent, power, cable TV (like they can even afford it), and other things and need to get approved for simple payday loans 24/7.