AP: Voters to decide South Dakota payday loan industry's fate

Payday loan stores don't operate in the 15 states that ban payday lending or interest rates over 36 percent, according to Pew. People have reported cutting back on expenses, borrowing money from friends and family, and selling or pawning possessions, said Alex Horowitz, senior officer for Pew's small-dollar loans project.

Horowitz said eliminating the loans is likely better for consumer welfare than the state's current situation. Cathy Brechtelsbauer, coordinator of an anti-hunger group that is campaigning for the rate cap, said people could ask for help from their church, request an advance from their employer or tap a credit card.