Imposing interest rate caps on payday lenders across the state of Arizona would not be beneficial to the industry or the people who depend on it for financial help, according to a letter published Tuesday in the Arizona Business Journal by the Center for Consumer Freedom’’s Director of Communications Sarah Longwell.

Longwell’’s letter was written in response to an opinion piece that had been published in the Journal in December that characterized payday lenders as "scoundrels" that were "sucking the blood out of Arizonians" through their high interest rates.

However, Longwell responded that rates were in place to provide a service that many Americans utilized to stay above water financially. Referring to a Federal Reserve study she added that 88 percent of payday loan borrowers had been satisfied with their experience.

"Short-term ”payday” lenders have been under attack by state and federal lawmakers who denounce their services as ”predatory,”" She wrote. "But across the country, borrowers in need of emergency cash choose these loans willingly, over other financial options."

She also referenced a recent study that found payday lenders currently only made $1.37 in profit for every $100 loaned, and that if rates were to capped that many would be forced out of business and no longer be able to serve the customers who depend on them.

Because falling behind on utility bills can set off a chain reaction of additional charges expenses that can only complicate a sticky financial situation, staying up to date on all payments should be considered a top priority.

According to the Las Vegas Review-Journal, Southwest Gas in Nevada cut service to 40,361 households in 2008. Through the first 10 months of 2009 they had already surpassed that figure, cutting service to 43,025 households.

Having a service cut after falling behind on payments can result in a financial snowball effect as well, pushing those who are already in financial trouble further into debt. According to the Associated Press, Reno resident Codi Bihl had her power cut by NV Energy after falling behind on her payments while on maternity leave.

After negotiating a payment plan and having her power restored, Bihl was surprised when her bill from the company included a $175 deposit in addition to the $97 cost along with a warning that power would be shut off once again if it was not paid in full.

“It’s crazy,” she told the AP. “If we are having trouble paying the monthly bill what makes them think that we can pay this huge deposit?”

When facing severe financial problems that put one at risk of having essential services such as electricity or gas disconnected, taking out a payday loan to cover the costs may help to avoid any additional costs that would be incurred otherwise.