What is Payday Loans

 Meet Jennifer

she's having trouble paying her bills

and making rent on time so like twelve

million americans a year she takes out a

cash advance on her paycheck and she makes it

through another two weeks

problem solved right

not necessarily

payday loans are different from other

kinds of loans because you don't get to

pay them back over time you have to pay

them back all at once

you can get them then in lots of places in

storefronts online

even in a few banks

to qualify Jennifer needs two things

income easy she's got a job and a checking account

Jennifer is short three hundred seventy

five dollars on her rent which is also the

average payday loan amount

to get the loan she just has to agree to

pay a one-time fee of fifty five dollars

two weeks later though Jennifer's

situation isn't any better and she can't

afford the three hundred seventy five

to pay back the loan

but she can afford another fifty-five

dollars to renew the loan

If Jennifer is a typical payday loan

customer she's going to do this again

and again

for five months of the year

paying five hundred twenty dollars in

fees

all for that original three hundred

seventy five dollar loan to pay her rent

jennifer story is a common one

payday loans are marketed as short term

solutions for emergency use

but the reality is quite different

to learn more about payday loans

who uses them and why

checkout you pewtrusts dot org slash small

loans