The 6 Most Common Pitfalls of Payday Loans, and How to Avoid Them [Infographic]

Each year, approximately 12 million Americans rely on payday loans to manage income fluctuations or deal with unexpected emergencies. However, while payday loans are used to solve a very real problem, consumers are often abused by predatory payday lenders. Because of the limited regulation and lack of better choices, it is not uncommon to read the horror stories of people who charge more than 1,000% of the annual interest rate or fall into the debt trap.

Once a person is in debt, endless transfers and hidden costs, they will soon see their credit hurt and bank accounts emptied, especially if they get a loan from a particularly unscrupulous lender. Payday loan strategies, such as hidden fees, flips and unreasonably high interest rates, have led to 22 US states restricting payday loans or completely ban them.




Source: www.lendup.com