Chapter 6 Payday Loans
This module on Payday Loans was written by Mark Branson.
Almost everyone borrows money at some point in their life. When you borrow money from a bank or another financial organization, they charge interest.
How do banks decide how much it should cost to borrow money? Do they do this fairly? While everyone uses credit - whether for mortgages, student loans, credit cards, or in other forms - the poor often have less access to credit. When organizations charge people unfairly high interest rates, the practice is called predatory lending.
Who you are, where you live, and what you do affects your ability to borrow money. In this module, we'll explore payday loans, a common (and expensive) way of borrowing money for people without other options.