Test your knowledge

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

Keep studying!

Review your answers below to learn more.

It is possible to pay more in fees on a payday loan than the amount you originally borrowed.

Choose wisely. There is only one correct answer.

True

False

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.

You can get a short-term loan from your checking account through what is called _______.

Choose wisely. There is only one correct answer.

Overdraft protection

A checking account loan

A cash advance

Overdraft protection. Overdraft protection simply means overdrawing your checking account. You will likely be charged a fee for it.

All credit cards are a form of predatory lending.

Choose wisely. There is only one correct answer.

True

False

False. Some credit cards have very high fees and other predatory features, but many of them do not.

What do borrowers use payday loans for?

Choose wisely. There is only one correct answer.

Medical emergencies

Regular bills

As an alternative to other loans

All of the above

All of the above. People take out payday loans for many different reasons.

Which of the following are you forbidden to spend payday loan money on?

Choose wisely. There is only one correct answer.

Rent

Other loans

Car repairs

You are not forbidden to spend payday loan money on anything.

You are not forbidden to spend payday loan money on anything. There are no restrictions on what you can spend payday loan money on.

© Copyright 2024 Precision Information, publisher of the Financial Fitness Group family of products. The trade name Financial Fitness Group and the trademarks Financial Fitness CENTER™, Financial Fitness CHECKUP™ and Financial Fitness ACADEMY™ are exclusive marks of Precision Information, LLC. All rights reserved.