Without a doubt about pay day loans for Dummies

Without a doubt about pay day loans for Dummies

We haven’t slammed payday lending for a long time now, it’s about time so I figured.

What Are Pay Day Loans?

I’ve attempted during my overly wordy and way that is complex 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 video clip could be the easiest, clearest description of payday lending’s ugliness that I’ve seen.

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

How Come Individuals Just Take Out Pay Day Loans? Continue reading