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Personal Finance Courses: Predatory Lending

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1.
If you take out $1000 from a payday lender, a credit card, and a credit card cash advance, which will charge the most interest?
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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.
2.
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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All of the above. All of these are possibilities.
3.
Predatory lending can occur with which of the following?
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All of the above. All of these and many more can be involved in predatory lending. You should evaluate all of them carefully.
4.
The interest rates of payday loans are very high.
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True. Payday loans have average annual interest rates of 500 percent--or more.
5.
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.