Payday Loans Explained | Pew


Meet Jennifer she’s having trouble paying her bills
and making rent on time so like twelve million americans a year she takes out a
cash advance on her paycheck and she makes it through another two weeks problem solved right not necessarily payday loans are different from other
kinds of loans because you don’t get to pay them back over time you have to pay
them back all at once you can get them then in lots of places in
storefronts online even in a few banks to qualify Jennifer needs two things
income easy she’s got a job and a checking account Jennifer is short three hundred seventy
five dollars on her rent which is also the average payday loan amount to get the loan she just has to agree to
pay a one-time fee of fifty five dollars two weeks later though Jennifer’s
situation isn’t any better and she can’t afford the three hundred seventy five
to pay back the loan but she can afford another fifty-five
dollars to renew the loan If Jennifer is a typical payday loan
customer she’s going to do this again and again for five months of the year paying five hundred twenty dollars in
fees all for that original three hundred
seventy five dollar loan to pay her rent jennifer story is a common one payday loans are marketed as short term
solutions for emergency use but the reality is quite different to learn more about payday loans who uses them and why checkout you pewtrusts dot org slash small
loans

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