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Choose wisely. There is only one correct answer to each question.

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If you take out $1000 from a payday lender, a credit card, and a credit card cash advance, which will charge the most interest?

Choose wisely. There is only one correct answer.

The payday lender

The credit card

The credit card cash advance

The payday lender. By far, the payday lender will charge the most interest. The dollar amount difference between it and the credit cards will be immense. It should be noted that there are also options that are even lower in interest than the credit cards.

If you put up your car as collateral for a car title loan, what happens to your car if you pay the loan back?

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The lender can still keep the car

You retain ownership of your car

Nothing

None of the above

You retain ownership of your car. As long as you pay the loan back, you legally must get your car back.

What are some things that a payday lender could do if you did not pay back a payday loan you took out?

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Turn your loan over to a debt collector

Sue you

Repossess your property that you put up as collateral

All of the above

All of the above. All of these are possibilities.

When you take out a payday loan, how long is the grace period for paying it back?

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Two weeks

One month

Two months

There is no grace period.

There is no grace period. Payday loans do not offer grace periods; you must pay them back on your payday or you will be charged late fees.

The interest rates of payday loans are very high.

Choose wisely. There is only one correct answer.

True

False

True. Payday loans have average annual interest rates of 500 percent--or more.

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