ST. LOUIS — While the nation's money meltdown has made it difficult for even dependable borrowers to get credit, fast cash continues to be just a short walk away in some neighborhoods.

But let the buyer beware: the convenience of payday loans and similar short-term lending outfits can come at a steep price.

Recognizing that these quick-fix options could be even more attractive in the current economy, St. Louis is joining a growing number of cities trying to curb their growth.

City officials are worried that families deeply in debt could plunge further into trouble with high-interest loans that offer only brief repayment windows.

Aldermen are debating a proposal that would restrict new payday loan and check-cashing operations close to schools or homes. The plan also would prohibit stores from opening near an existing location.

Although the number of payday loan stores has not increased in Missouri, they are a ubiquitous presence in areas where residents are the most financially vulnerable.

St. Louis Alderman Jennifer Florida, sponsor of the measure that would limit their growth, calls payday lending stores "predatory lending at its worst."

"They want to go wherever there are poor people," Florida said. "They are just flooding our markets."

Traveling down some stretches of South Kingshighway in St. Louis, it's impossible to go more than a few blocks without seeing stores — with names like "Quik Cash" or "Planet Cash" — that promise over-the-counter dollars regardless of credit history.

Payday lenders typically charge $90 for someone to borrow $500 — the maximum permitted under state law — for a term that lasts between two weeks and a month.

If a borrower is unable to pay in the allotted period, they can face an annual interest rate of more than 400 percent, though that figure can be misleading because the state caps total interest charges for a $500 loan at $375.

There are fewer restrictions, though, on title loans, which require the borrower to put their automobile as collateral for a cash advance of up to $5,000.

Often, both types of establishments are clustered close together, allowing for customers to pick up multiple obligations in one trip. Many stores also offer check-cashing services, though critics say the stores charge high fees.

"Some blocks you can go down the street and you see 4, 5, 6, 7 of them," said James Gardner, 45, who had visited a payday loan store with his fiancé. "They are preying on folks who don't have much money, making their situation worse."

For others, though, the equation is not as simple. A payday loan store can double as a community bank in places where traditional lending institutions are harder to find.

Sometimes, payday loan stores are the lender of last resort for people who operate without a financial safety net and suffer an emergency between paychecks.

"Unfortunately, in most of our wards, we don't have residents who believe in banks," Alderman Marlene Davis said at a hearing last week.

Tom Linafelt, a spokesman for the company that owns the Quik Cash chain, said the industry is often used as a scapegoat for broader financial ills.

Payday loans, Linafelt said, are intended to provide a financial boost for unforeseen situations, such as medical bills or car repairs, not as a frequent source of money.

Laws to restrict the opening of new stores, Linafelt said, actually help companies like his because they lessen competition.

"City fathers should be looking to expand the credit options available to their constituents, not restrict those options," he said.

Harry Franklin, 47, standing outside a payday loan store on Kingshighway recently, said he sees the "good and bad" in such businesses. The problem for many customers, he said, is forgetting about the potentially high interest rates.

"You think it's easy money," he said.

NEW STORES ONLY

The plan under consideration at City Hall would apply only to new payday loan and check cashing stores. It would keep them from opening within a mile of an existing store, and within 500 feet of a residence, elementary school or secondary school.

St. Louis County already has an ordinance regulating the proximity of payday loan stores. Rock Hill recently put a six-month freeze on new short-term lending establishments, while officials in O'Fallon, Mo., are considering limiting the location and hours of business of payday lenders.

In Kansas City, where the stores are treated like adult entertainment venues and other regulated businesses, voters recently approved a $1,000 license fee for payday loan outfits.

Missouri Attorney General Jay Nixon has been a frequent critic of payday loans, a role he continued in his successful campaign for governor this year.

Linafelt, of the Quik Cash chain, said the industry, despite popular perception, does not thrive during tough economic times; profits depend on customers paying back loans.

The number of payday loan stores in the St. Louis area, which includes the city and the county, is actually down, from 123 in 2006 to 112 currently, according to the state Division of Finance, which regulates short-term lenders.

Statewide, the number of stores has stayed relatively the same in recent years, at about 1,300.

Some advocates for the poor, though, think there are still too many payday loan stores clustered in low-income communities. Most, if not all, short-term lending establishments have virtually no screening process, making it easy for customers to take out several loans at once, getting swallowed by debt as the interest racks up.

"People get in way over their heads," said Larry Weber, executive director of the Missouri Catholic Conference. "Instead of owing $500, they end up owing thousands of dollars."

The bill in St. Louis to curb the growth of payday lenders earned preliminary approval Friday. Aldermen are expected to give it final approval soon, and it could be signed by the mayor into law in the next several weeks.

Alderman Florida, the measure's sponsor, acknowledges that payday loans are "perfectly legal."

"But do they need one on every single corner?" Florida asks. "I don't think so."