The tight credit market and flagging economy are driving people to use payday and title loans to fund their day-to-day lives, and efforts by the state to regulate the industry haven’t removed the traps involved in using the companies for quick cash.

The number of loans issued each month has been on the decline, according to state data, but the average loan amount has risen to $374 in the past year, compared with $350 from December 2005 to June 2006.

Several people the Register Star asked to talk to about their use of the loans declined to speak, saying they were embarrassed at having to take such a step to cover utility bills and gas purchases. Many, however, said it was their only choice to get the money they needed.

“Right now, we’re seeing them as a means to survive,” said Letitia McEastland, creditor relations supervisor at Family Credit Counseling Services. “It’s no longer so they can go on a quick vacation and go out of town. This is so they won’t get their lights cut off. There’s no assistance anywhere else they can find, so they see the doors open from the payday lender and they walk right in.”

Source: rrstar.com