"Payday loans are advertised as a way for people with bad credit to get some quick cash in a pinch. They’re small loans, but they come with astronomical fees and interest rates if you can’t pay them back on time.
Trust us, one of the worst financial decisions you can make is to take out a short-term loan like this. Payday loans usually range from $100 to $1,000 and have interest rates of 400% or more! But sadly, that doesn’t stop some Americans from falling victim to these scams.
Why do people take out payday loans?
When people can’t pay for their necessities, they can become scared and make rash decisions. Sometimes this lands them in the office of a payday loan shark because they think it’s the only option left.
Unfortunately, many people who borrow these kinds of short-term loans get stuck in the debt cycle. And it’s not even big “emergency” purchases that are keeping them there. A report by Pew Charitable Trusts found that 7 in 10 borrowers use payday loans for everyday, reoccurring expenses like rent and utilities.
And if that’s not enough to make your head spin, 12 million Americans take out payday loans each year, and those who borrow pay an average of $520 in fees on an average loan of $375."
https://www.daveramsey.com/blog/get-out-payday-loan-trap
Trust us, one of the worst financial decisions you can make is to take out a short-term loan like this. Payday loans usually range from $100 to $1,000 and have interest rates of 400% or more! But sadly, that doesn’t stop some Americans from falling victim to these scams.
Why do people take out payday loans?
When people can’t pay for their necessities, they can become scared and make rash decisions. Sometimes this lands them in the office of a payday loan shark because they think it’s the only option left.
Unfortunately, many people who borrow these kinds of short-term loans get stuck in the debt cycle. And it’s not even big “emergency” purchases that are keeping them there. A report by Pew Charitable Trusts found that 7 in 10 borrowers use payday loans for everyday, reoccurring expenses like rent and utilities.
And if that’s not enough to make your head spin, 12 million Americans take out payday loans each year, and those who borrow pay an average of $520 in fees on an average loan of $375."
https://www.daveramsey.com/blog/get-out-payday-loan-trap