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Payday loans are unsecured cash advances for small amounts of money (usually less than

Payday loans are unsecured cash advances for small amounts of money (usually less than $1,000) with very high interest rates and short-term repayment demands.A typical loan $500, which borrowers often need to cover essentials such as rent, utilities, food or a medical bill.

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Payday loans are unsecured cash advances for small amounts of money (usually less than $1,000) with very high interest rates and short-term repayment demands.

A typical loan $500, which borrowers often need to cover essentials such as rent, utilities, food or a medical bill.

Banks used to make those sorts of loans, called deposit advances, which were generally repaid quickly – often before a borrower’s next paycheck.

But new banking rules ended the practice in 2014 after regulators warned that deposit advances sometimes led borrowers to crippling debt.

Though many people assume payday lenders charge high interest because they deal with high-risk customers, default rates are typically quite low.

Many states now regulate payday loan interest rates, and many lenders have withdrawn from states that do.

In 2008, a Dartmouth economist said there were more payday loan outlets than Mc Donald’s restaurants and Starbuck’s coffee shops combined.

,000) with very high interest rates and short-term repayment demands.

A typical loan 0, which borrowers often need to cover essentials such as rent, utilities, food or a medical bill.

Banks used to make those sorts of loans, called deposit advances, which were generally repaid quickly – often before a borrower’s next paycheck.

But new banking rules ended the practice in 2014 after regulators warned that deposit advances sometimes led borrowers to crippling debt.

Though many people assume payday lenders charge high interest because they deal with high-risk customers, default rates are typically quite low.

Many states now regulate payday loan interest rates, and many lenders have withdrawn from states that do.

In 2008, a Dartmouth economist said there were more payday loan outlets than Mc Donald’s restaurants and Starbuck’s coffee shops combined.

The decline in operations has cut deeply into the payday loan business. Abandoned houses or vacant shopping centers are an obvious sign things aren’t good, but a more subtle indication of financial insecurity is the number of payday lenders in the area — businesses that cater to cash-strapped customers willing to pay exorbitant interest for small personal loans.According to a 2015 study by the Pew Charitable Trusts, 12 million Americans take out payday loans each year and spend billion on loan fees.The 2018 revision will allow banks to return to the business, but perhaps not for long.The CFPB is scheduled to impose strict regulations on loans of 45 days or less.

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