"So many of the people making the decisions do not ever need a payday loan and don't understand that you work out the percentage interest rate and isn't it terrible that you paid $50 to borrow $400? Well, not if it keeps the lights on in your house. Do you know what the fees are to get reconnected? People in public affairs don't know. People are in the political world always have the $400 to pay their light bill," he added.

Sherman hopes credit unions will serve those in need of payday loans.

"My hope is that credit unions will fill this space. I mean, if there's any area where you move in and provide a better deal because you're a non-profit member-owned institution, these are the people that need credit unions the most. They need credit unions to encourage savings because once you get $1,000 in the bank or in a credit union, you can be your own payday lender," he said.

Sherman encouraged people to put $540 back in their account if they have to take out $500 for an emergency.

"It's hard. My wife and I talk about money and spending but we have to keep reminding ourselves we're raising a family on a whole lot more than the average American," he said.

Sherman, a member of the Financial Servies Committee, said banks aren't the only group pushing to tax credit unions.

"Show that the net revenues are not the $3 billion a year the banks are going to claim but maybe a half billion a year, and realize your opponent is not just the banks who want to see you taxed but everybody who wants a $3 billion a year tax break. (They are) being told by the banks, your tax break is just great and you ought to get the $3 billion – even though it's $500 million – you ought to get the $3 billion from the credit unions. It's a matter of showing Congress that allowing this tax exemption is a very low cost way to encourage the good work that credit unions do," Sherman advised.