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But that's what Glenda Wood of Bellevue planned to do Tuesday, as she testifies on a bill (LB1036) that would restrict lending practices of payday loan centers. 

She'd like to see the Legislature extend the time frame for the loans to be paid back, she said. 

In 2007, Wood and her husband needed tires for their vehicle and took out a $500 payday loan without realizing, she said, they would have to pay the full amount back right away.

"And so we kind of got trapped in this cycle of basically just renewing that same loan over and over again, just paying the fees and not paying back the loan itself," she said. 

"We should have known better, but sometimes when you're just desperate to get something fixed, you do what you can." 

At the time, she said, they needed the money and there was no other way to get it. But knowing what they know now, they shouldn't have taken the loan, she said. 

"I can only hope that by sharing our story of what we went through for several years that it will help others," she said. "Sometimes people get wrapped into something they don't fully understand."

The bill, introduced by Lincoln Sen. Kathy Campbell, would repeal the 34-day limit on a payday loan's duration and replace the short-term, lump-sum payment with one based on affordable payments over time.

It would require that loan charges be figured up front and spread out over time, so that each month a borrower makes substantially equal payments that go toward principal, interest and fees.

It would also set a maximum monthly payment at 5 percent of borrower income and limit maximum loan charges. Lenders could charge borrowers an interest rate of only up to 36 percent per year, and a maximum monthly maintenance fee of $20.

Campbell said the bill resulted from discussions of the Legislature's Intergenerational Poverty Task Force, and a continuing study of behaviors, conditions and policies that contribute to persistent poverty in Nebraska. 

Brad Hill, president of the Nebraska Financial Services Association and a payday lender, said the number of payday loan companies has been dwindling, and if the bill passed it would eliminate those left or leave few operators.

With all the criticism payday loan companies get, he said, the Department of Banking, the Better Business Bureau and the Consumer Financial Protection Bureau get few complaints about them. 

"This legislation is not consumer or complaint driven," Hill said. 

The proponents of the bill point to a Colorado law that eliminated the conventional two-week payday loan and replaced it with a six-month installment loan. The average loan of $389 repaid in three months now costs $116. And the average borrower pays 4 percent to 5 percent of their paycheck on repay, rather than one-third. 

Hill said when the Colorado law went into effect in 2010, two-thirds of the businesses closed. Some have since come back, he said. 

"The law that they're proposing here is even more restrictive," he said. 

The licensing fee would also double for Nebraska lenders, he said.

The loans work this way: The borrower writes a check for 15 percent over the amount borrowed; so for a $100 check, the borrower gets $85 in cash. When the person gets their next paycheck, he or she brings in $100 or the payday lender deposits the original check. If any check bounces, the charge for a returned check is $15.

The average payday loan is around $300, with a $55 fee. The maximum loaned is $500. 

"Our customers really have nowhere else to go," Hill said. "No one seems to be complaining except this maternalistic legislation." 

Nick Bourne, director of the small-dollar loans project of the Pew Charitable Trusts, has done research and analysis on payday lending for more than five years and developed public policy recommendations. 

"This market that people are using is not working very well," he said. "And there are models on the table out there that show how this market can work better."

There are a staggering number of people whose incomes fluctuate -- wage workers, independent contractors -- and they may have problems making ends meet month to month. The mainstream worker makes about $30,000 a year, or $1,250 every two weeks. 

Frequently their needs mismatch with their paychecks. Hours are down but the rent is due, for example. Or the credit card is maxed out and a student loan payment is due. 

The payday loan they sometimes turn to makes the situation worse, he said. The person who has to turn around in two weeks and pay back $300 will lose about one-third of his or her paycheck. 

Patricia "Big Mama" Barron, owner of Big Mama's Kitchen and Catering in Omaha, sent a letter to senators last week saying she was concerned about the payday loan regulations in Nebraska and their impact on families. 

"I can tell you 100 horrific stories of my employees, family and friends on how they have struggled, and many times failed, to get out of the cycle of the predatory lending of payday lenders," she said. 

She urged the Banking and Commerce Committee to advance the bill.

"LB1036 would still make payday loans available but limit how much lenders are allowed to profit from families in difficult circumstances," Barron said.