Payday loans often trap borrowers into long-lasting, damaging debt cycles.
Payday loans often trap borrowers into long-lasting, damaging debt cycles.
Exceptionally high interest rates often exceed three hundred percent Annual Percentage Rate (APR).
Exceptionally high interest rates often exceed three hundred percent Annual Percentage Rate (APR).
The debt trapSky-high interest
The debt trapSky-high interest
Short repayment terms demand full repayment within just two weeks.
Short repayment terms demand full repayment within just two weeks.
Short repayment window
Short repayment window
Most borrowers cannot repay the entire balance by payday.
Most borrowers cannot repay the entire balance by payday.
Repayment struggle
Repayment struggle
Lenders allow fee-only payments while the original debt remains unchanged.
Lenders allow fee-only payments while the original debt remains unchanged.
Loan rollovers
Loan rollovers
Eighty percent of payday loans are rolled over within two weeks.
Eighty percent of payday loans are rolled over within two weeks.
Rollover statistics
Rollover statistics
Triple-digit interest makes total repayment exceed the original borrowed amount.
Triple-digit interest makes total repayment exceed the original borrowed amount.
Triple-digit costs
Triple-digit costs
Direct account access triggers overdrafts and additional bank penalties.
Direct account access triggers overdrafts and additional bank penalties.
Bank account access
Bank account access
According to reports, one in four borrowers re-borrow payday loans nine times.
According to reports, one in four borrowers re-borrow payday loans nine times.
Serial borrowing
Serial borrowing
Borrowers face financial stress because of these loans.
Borrowers face financial stress because of these loans.
Real-life impact
Real-life impact
Disclaimer The information provided on this website is for general informational purposes only and should not be considered financial or legal advice. Please consult with a qualified financial advisor before making any decisions.