Test your knowledge

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

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Review your answers below to learn more.

To qualify for a payday loan, what must your income be?

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$100 per week

$300 per week

There is no minimum.

There is no minimum. You just need to earn sufficient money to cover the loan.

Although people who take out payday loans use them for many different purposes, what is the most common use?

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Regular living expenses

Emergencies

College tuition

None of the above

Regular living expenses. Most borrowers use payday loans for regular living expenses.

If you roll over a payday loan three times, you will be charged a new fee each time.

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True

False

True. You will be charged a new fee for each rollover.

What are some things that a payday lender could do if you did not pay back a payday loan you took out?

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Turn your loan over to a debt collector

Sue you

Repossess your property that you put up as collateral

All of the above

All of the above. All of these are possibilities.

Predatory lending can be identified by _______.

Choose wisely. There is only one correct answer.

Its high costs

Its low costs

Its high costs. Predatory lending involves a business charging higher-than-normal costs of various kinds.

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