Shockingly, the average payday borrower spends $793 on a $325 loan. Dear. God.
“Contrary to [the Center for Responsible Lending]‘s spin, responsible uses of the payday product provides consumers firm footing to overcome unexpected financial circumstances,” said Ken Compton, chief executive of Advance America, in a press release.” Spin? It is no spin to say that payday loans are loansharking. Being technically legal doesn’t excuse that.
I mean, payday loans are so bad that consumer advocates recommend consumers in a pinch take out a cash advance on a credit card, even a high-interest card. That’s because a credit card with a 40% APR is a steal compared to payday loans, which usually have APRs far above 100% (usually more like 300-1000% APR).
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