We haven’t slammed payday lending for a long time now, thus I figured it is about time.

We haven’t slammed payday lending for a long time now, thus I figured it is about time.

Exactly What Are Pay Day Loans?

I’ve attempted during my overly wordy and way that is complex explain payday financing in past articles (see for example Reverse Bank Robbery, Banking institutions Now Payday Lenders, and Wonga: So Wronga), but this 76-second movie may be the easiest, clearest description of payday lending’s ugliness that I’ve seen.

When you look at the video’s instance, John ultimately ends up having to pay seven $75 fees—$525—to borrow $500 for 12 months. In APR terms, that actually works off to about a 390% annualized rate of interest that John paid on their $500 loan. Continue reading “We haven’t slammed payday lending for a long time now, thus I figured it is about time.”