. Payday credit is priced per dollar borrowed, so when that option is available, depositors prone to small overdrafts switch … at banks and other depository institutions increases when depositors have access to payday credit. Our findings …

. North Carolina households have fared about the same. This negative correlation—reduced payday credit supply, increased … credit problems—contradicts the debt trap critique of payday lending, but is consistent with the hypothesis that payday … credit is preferable to substitutes such as the bounced-check “protection” sold by credit unions and banks or loans from …