If pawn shops charge high interest rates on loans, why do people borrow money from them?

If pawn shops charge high interest rates on loans, why do people borrow money from them?

If pawn shops charge high interest rates on loans, why do people borrow money from them? Suppose Congress passes a law that puts a ceiling of 10% per year on the interest rate that pawn shops can charge on loans. Would this law be likely to help low-income people? Briefly explain.
If pawn shops charge high interest rates on loans, why do people borrow money from them?

If pawn shops charge high interest rates on loans, why do people borrow money from them? Suppose Congress passes a law that puts a ceiling of 10% per year on the interest rate that pawn shops can charge on loans. Would this law be likely to help low-income people? Briefly explain.