So from the borrowers perspective, they paid out a ton of money just like they would to a loan shark for a short term loan. The payday lenders like for people to do this, in fact that is how they make their money. If everyone that got a payday loan simply paid the thing off as soon as the original loan was due, payday lenders would be out of business.
I am not an idiot (nor are the majority of people on here that seem to be agreeing with my position on this). I get what is going on. Of course its technically a new loan every time, but that doesn't change the fact that Joe walks into a payday loan shop, gets a short term loan for 300 dollars, can't pay it off when its due, thus takes another loan out and pays interest and fees every time he does so until its paid off. Do you not understand that?