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Personal Finance Courses: Predatory Lending

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1.
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.
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.
What is a typical fee on a payday loan?
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15%. Fee rates range from 15-20% of the amount borrowed.
4.
How soon after receiving your funds from a payday loan can you spend the money?
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Right away. You may spend the money as soon as you want.
5.
If you are behind on a non-payday loan, why should you talk with the creditors about it?
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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.