But the loans are cyclical. You take out a $300 and have to pay $345 next week. Next week, since you are troubled financially, cannot make the payment, so you t

But the loans are cyclical. You take out a $300 and have to pay $345 next week. Next week, since you are troubled financially, cannot make the payment, so you take a $345 loan and have to pay $400 next week. Continue until they cut you off and sic a collection agency on you.