Choose wisely. There is only one correct answer to each question.
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1.
All credit cards are a form of predatory lending.
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?
Two weeks. Most payday loans last about the length of a pay period, which is two weeks.
3.
If you are behind on a non-payday loan, why should you talk with the creditors about it?
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.
It is possible to pay more in fees on a payday loan than the amount you originally borrowed.
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.
5.
Which of the following are you forbidden to spend payday loan money on?
You are not forbidden to spend payday loan money on anything. There are no restrictions on what you can spend payday loan money on.