A loan you can get quickly that isn’t due until your next payday sounds like a good idea. But how do payday loans work? Are they the start of a cycle of expensive fees and paying high interest?
It’s tempting when you’re in a financial bind to look for a quick solution. Payday loans seem simple, but they often come with extra costs that could hurt your wallet more than you bargained for this month.
According to the Consumer Financial Protection Bureau (CFPB), nearly 25% of people who take out a payday loan default on that loan, and more than 80% have to borrow money again within 14 days.