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Personal Finance Courses: Predatory Lending

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1.
It is possible to pay more in fees on a payday loan than the amount you originally borrowed.
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True. If you extend the loan or take out a different one to cover it, and you did this several times in a row, you might actually pay more in interest than the actual loan itself.
2.
How long do most payday loans last?
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Two weeks. Most payday loans last about the length of a pay period, which is two weeks.
3.
All credit cards are a form of predatory lending.
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False. Some credit cards have very high fees and other predatory features, but many of them do not.
4.
To qualify for a payday loan, what must your income be?
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There is no minimum. You just need to earn sufficient money to cover the loan.
5.
If you have a short-term financial emergency, what is a low-cost way to obtain a loan?
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Emergency credit union loan. Many credit unions and banks offer relatively low-interest short-term loans that can help tide you over a short-term financial emergency.