Abstract: вЂњThe financial obligation trap theory implicates payday advances as a factor exacerbating customersвЂ™ monetary distress. Appropriately, restricting use of pay day loans could be anticipated to reduce delinquencies on main-stream credit services and products. We try this implication regarding the theory by analyzing delinquencies on revolving, retail, and installment credit in Georgia, new york, and Oregon. These states paid down option of pay day loans by either banning them outright or capping the costs charged by payday loan providers at a level that is low. We find tiny, mostly positive, but frequently insignificant alterations in delinquencies following the cash advance bans. In Georgia, but, we find blended proof: a rise in revolving credit delinquencies but a decrease in installment credit delinquencies. These findings claim that payday advances could cause harm that is little providing advantages, albeit tiny people, for some customers.