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The Truth About Payday Loans

The Truth About Payday Loans. 2005. The Truth About Payday Loans. What is a payday loan? How does it work? Does the debt cycle ever end? Other ways to borrow How to prepare for financial emergencies Helpful contacts. Payday Loan Ads. Payday loan ads are everywhere!.

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The Truth About Payday Loans

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  1. The Truth AboutPayday Loans 2005

  2. The Truth About Payday Loans • What is a payday loan? • How does it work? • Does the debt cycle ever end? • Other ways to borrow • How to prepare for financial emergencies • Helpful contacts

  3. Payday Loan Ads Payday loan ads are everywhere! Are you buried in bills? Pay day loans up to $500 Confidential and secure Bad Credit OK No fax payday loans

  4. What is a Payday Loan? • Payday loans are small loans for short period of time. • You must have: • Checking account • Proof of employment • You’ll be charged a fee • No credit check

  5. How Does a Payday Loan Work? • You need $200 to fix your car • You agree to pay a fee of $45 • You write a check for $245 • You agree to pay back the total in two weeks • You get $200 in cash

  6. How Does a Payday Loan Work? • What happens after two weeks: • You pay the loan back in cash • The lender deposits the check • You roll over the loan (for a fee) or take out a second loan—if state law allows • You default on the loan

  7. Does the Debt CycleEver End? • Rolling and rolling over the loan – and taking out multiple loans – results in a cycle of debt that you want to AVOID. • Emergency or way of life?

  8. Other Ways toBorrow • Credit union • Cash advance from a credit card ( make sure the interest rate is lower than other options) • Church or a reputable local community-based organization • Family or friends (make sure the terms are in writing!)

  9. Preparing forFinancial Emergencies • Speak to your lenders • Consider overdraft protection • Make a budget and SAVE! • Find a reputable credit counseling service

  10. Helpful Contacts • To file a complaint, contact: • Federal Trade Commission: 1-877-FTC-HELP or visit www.ftc.gov • State Attorney General • Center For Responsible Lending: • 1-800-388-2227

  11. The Truth About Payday Loans • What is a payday loan? • How does it work? • Does the debt cycle ever end? • Other ways to borrow • How to prepare for financial emergencies • Helpful contacts

  12. The Truth AboutPayday Loans 2005

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