An annualize interest rate of 250% for a 1 month term means a 1.08% actual interest rate. If just 8% of your loans default you lose money. A 70% default rate w

An annualize interest rate of 250% for a 1 month term means a 1.08% actual interest rate. If just 8% of your loans default you lose money. A 70% default rate would mean that you expect lose 68% of your money every month. Sure, you don't go to 0. But you need a very high repayment rate for short term loans to work; and very difficult to interest your way out of the problem.