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Personal Finance Courses: Predatory Lending

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1.
To qualify for a payday loan, what must your income be?
Choose wisely. There is only one correct answer.
There is no minimum. You just need to earn sufficient money to cover the loan.
2.
The interest rates on payday loans are _______.
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Higher than those of banks or credit unions. Interest rates on payday loans are generally much higher than those of other loans.
3.
If you roll over a payday loan three times, you will be charged a new fee each time.
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True. You will be charged a new fee for each rollover.
4.
What do borrowers use payday loans for?
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All of the above. People take out payday loans for many different reasons.
5.
If you are behind on a non-payday loan, why should you talk with the creditors about it?
Choose wisely. There is only one correct answer.
They would rather work with you than have to sell your loan to a debt collector. If they sell your loan to a debt collector, they will get very little for it. They WANT to work with you rather than see that happen.