The Shocking Cost of Payday Loans
We talk a lot about payday lending and the danger it poses to consumers. The One Less Foundation spends time and resources to fight against such predatory lending practices through legislative action, but just how damaging is this practice? Courtesy of the Filene Research Institute here are three shocking stats you should know about payday lending:
1. “If it were a country, the “Empire of Payday Lending” would be the 104th largest economy in the world.”
2. “Every 90 seconds, $67,000 in payday debt is issued.”
3. In certain states the maximum finance charge and APR for a loan can potentially be limitless.
At The One Less Foundation, we regularly meet individuals trying to dig themselves out of payday loans with interest rates upwards of 300%. These are individuals that didn’t have the money to cover unexpected expenses in the first place, let alone the interest and finance charges associated with these loans.
Together we can help bring and end to payday lending through our advocacy efforts and a wide-reaching financial education program.