For someone who can't pay a cellphone bill or the rent, it might seem perfectly reasonable to dish out an extra $42 to get a $300 two-week advance on a paycheck in Michigan.

After all, you'd be able to pay the bills, keep your service and avoid extra late fees.

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Alex Horowitz, research manager for Pew Charitable Trusts in Washington, D.C., maintains that many people end up getting trapped in a payday loan cycle that lasts closer to five months or more.

About 27% of those surveyed in the Pew Report said a payday lender making a withdrawal from their bank account caused an overdraft, according to Pew's report.

Lenders are able to automatically withdraw payments from borrowers' bank accounts.

Only 14% of those surveyed in the Pew report said they can afford to pay more than $400 toward their payday loan debt in a month, the report noted.

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