Payday Loans
19 Questions
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Payday Loans

Created by
@SupportivePelican

Questions and Answers

Which type of loan is considered predatory because of its misleading terms and high fees?

Payday loans

What is the typical cost of APR for payday loans?

400% APR

What is the purpose of payday loans?

To offer quick cash for emergencies

How do cash advances differ from payday loans?

<p>Cash advances are offered through credit card providers</p> Signup and view all the answers

Why are cash advances considered predatory?

<p>Because they start accumulating interest immediately</p> Signup and view all the answers

What is the collateral required for pawnshop loans?

<p>An item of value</p> Signup and view all the answers

What happens if a borrower doesn't repay a pawnshop loan?

<p>The pawnshop keeps the item and sells it for profit</p> Signup and view all the answers

How do pawnshop loans differ from payday loans?

<p>Pawnshop loans are based on collateral</p> Signup and view all the answers

Why are payday loans considered unaffordable to borrowers?

<p>Because they have high fees and interest rates</p> Signup and view all the answers

Which of the following is a potential risk of borrowing from a pawn shop?

<p>The item used as collateral may be lost</p> Signup and view all the answers

What is a private loan?

<p>A loan from parents, relatives, or friends</p> Signup and view all the answers

What is a potential disadvantage of getting a private loan from parents, relatives, or friends?

<p>The relationship may be damaged if the loan is not paid back</p> Signup and view all the answers

What should borrowers consider before pawning an item at a pawn shop?

<p>The storage and insurance fees</p> Signup and view all the answers

What type of loan is typically small and may or may not involve paperwork and interest rates?

<p>Private loan</p> Signup and view all the answers

What is the potential consequence if a private loan is not paid back within the agreed upon terms?

<p>The borrower may damage their relationship with the lender</p> Signup and view all the answers

What should everyone involved in a private loan know and understand?

<p>The potential consequences of not repaying the loan</p> Signup and view all the answers

What is a potential disadvantage of borrowing from a pawn shop?

<p>The item used as collateral may be lost</p> Signup and view all the answers

What is a potential disadvantage of getting a private loan from parents, relatives, or friends?

<p>The relationship may be damaged if the loan is not paid back</p> Signup and view all the answers

What should borrowers consider before pawning an item at a pawn shop?

<p>The storage and insurance fees</p> Signup and view all the answers

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