Let me tell you about payday advances for Dummies

Let me tell you about payday advances for Dummies

I have actuallyn’t slammed payday lending for a long time now, therefore I figured it is about time.

What Exactly Are Pay Day Loans?

I’ve attempted during my overly wordy and complex solution to explain payday financing in past articles (see for example Reverse Bank Robbery, Banking institutions Now Payday Lenders , and Wonga: So Wronga), but this 76-second movie may be the easiest, clearest description of payday lending’s ugliness that I’ve seen.

When you look at the video’s instance, John ultimately ends up spending seven $75 fees—$525—to borrow $500 for 12 days. In APR terms, that actually works away to about a 390% annualized rate of interest that John paid on their $500 loan. Big Ouch.

Why Do Individuals Just Just Just Take Out Pay Day Loans?

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