Have you seen advertisements for payday loans?
- A payday loan is a small, short-term loan that is intended to cover a borrower's expenses until his or her next payday.
- A payday loan may also be called a "paycheck advance" or "payday advance."
- Usually the initial term for the loan is two weeks.
- The loans are also sometimes called "cash advances," although that term can also refer to cash provided against a prearranged line of credit, such as a credit card.
Here are the answers to some frequently asked questions about payday loans:
Payday Loan Frequently Asked Questions
- Consumer Federation of America web site, www.paydayloaninfo.org/
- Credit Abuse Resistance Education Program (C.A.R.E.), www.careprogram.us
- Center for Policy Alternatives, www.cfpa.org
- "'Fringe' Lenders: Traditional Institutions Search for Alternatives," Bridges, Winter 2007-2008, Federal Reserve Bank of St. Louis
- Pymnts.com website, https://www.pymnts.com/
- Statistics provided by the Center for Responsible Lending
What is the average amount borrowed?
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The average amount borrowed is $395.
For a full listing of states and their payday loan regulations click here.