Every year, about 12 million Americans take away loans that are payday. Interest levels are extremely high, with APRs averaging 390 per cent. The loan is repaid, the fees involved typically have far exceeded the original loan amount by the time. Costs compensated on these loans total about $7 billion per year, burdening borrowers—many residing paycheck-to-paycheck—who cannot pay for such strain that is financial.
More powerful safeguards are coming. Continue reading “Reforming Pay Day Loans Starts With Understanding How They In Fact Work”