Understanding Payday Loans

What makes payday loans particularly appealing to those in financial distress?

• They provide quick cash without a credit check.

• They have low interest rates.

• They require a lengthy approval process.

• They offer long-term financial solutions.

Why are payday loans considered dangerous?

• They have low fees.

• They are easy to repay.

• They have extremely high interest rates.

• They improve credit scores.

What is a common consequence for borrowers who cannot repay payday loans on time?

• They can roll over the loan for an additional fee.

• They receive a bonus from the lender.

• They are exempt from future fees.

• They are offered a lower interest rate.

What is one alternative to payday loans that employers might offer?

• Lottery tickets.

• Credit card cash advances.

• High-interest personal loans.

• Paycheck advances with no interest.

Which of the following is a more affordable borrowing option compared to payday loans?

• Ignoring the debt.

• Borrowing from a payday lender.

• Using a credit card cash advance.

• Taking another payday loan.