Don’t Turn To Payday Loans!

There’s a CNN article today about how Cleveland homeowners facing foreclosure are turning towards pay day loans to make ends meet. It’s horrible because pay day loans have ridiculous interest rates and fees that, if spelled out plainly, would make most people run for the hills.

A payday loan is a small-dollar, short-term loan with fees that can add up to interest rates of 400 percent. They’re generally taken out when the borrower is caught short on cash and promises to pay the balance back next payday.

If you’ve considered a pay day loan to make your next payment, read the article because it’s especially informative on the predatory nature of these loans.