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Personal Finance Courses: Predatory Lending

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1.
What do borrowers use payday loans for?
Choose wisely. There is only one correct answer.
All of the above. People take out payday loans for many different reasons.
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 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.
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.
If you roll over a payday loan three times, you will be charged a new fee each time.
Choose wisely. There is only one correct answer.
True. You will be charged a new fee for each rollover.