Payday Credit – How Payday Loans Can Create a Debt Trap
If you’re on a limited income and in need of cash, payday credit may seem like an attractive option. Unfortunately, the fees associated with these loans can lead to financial trouble in the future. According to a Pew Charitable Trusts study, borrowers who take out $300 payday loans over five months typically end up paying around $459 in fees. Furthermore, payday lenders do not typically report timely payments to credit bureaus, making it difficult for