Payday Loans in Real Life
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Transcript Payday Loans in Real Life
Payday Loans
Expensive: for a high fee, people can get a small
amount of money right away.
Short term: they must be paid back with the
borrower’s next paycheck, usually in 2 weeks.
Encourage repeat borrowing: they often trap
people in a cycle of debt.
Payday loans are expensive and dangerous.
Payday Loans in Real Life
Initial Loan Amount
=$255
2nd Loan
Initial Payday Loan Fee
3rd Loan
Additional Loan Fee = $45
4th Loan
Additional Loan Fee = $45
5th Loan
Additional Loan Fee = $45
Total Amount Borrowed
Total Fees/Interest
=$255
= $225
=$45
Additional Loan Fee = $45
Other Predatory Loans
Rent to Own Loans
High Interest Auto Loans
Tax Refund Anticipation Loans
Debt Settlement Loans
Car Title Loans
Alternatives to Payday Lending
Reconsider Spending
Find Other Funds (employer advance, yard sale,
odd jobs)
Borrow Better (from credit unions, credit cards,
family)
Get Help from Nonprofit Agencies (rent or other
one-time cash assistance, food)
Deal with Your Debt (contact utilities, contact
credit counselor)
SAVE