A Philadelphia Federal Reserve paper published in October investigates whether payday loans exacerbate or relieve customers' financial difficulties on the whole.

Payday loans are short-term loans that are intended to cover a borrower's expenses until his or her next payday. John Caskey, the paper's author, says the charge for payday loans can be as much as 15% to 20% of the amount lent. Caskey says some people are tempted by the easy access to cash made available by lenders and focus on the