But there are a few major downsides:
They trap you. To get a payday loan, you have to write a post-dated check for the loan amount up front. If you fail to pay it back on time, the lender will deposit the check, or you can write a second post-dated check for another loan, trapping you in an expensive cycle.
You have to pay them back in a short amount of time. Sometimes the timeline is as short as two weeks.
They have huge fees. Interest rates can range as high as 400%, according to the Consumer Financial Protection Bureau.
However dire your financial situation may be now, it is likely to get worse when you get a payday loan. If you’re facing payments that you can’t make and feel that you’re running out of options, try these tactics instead:
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