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