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Glossary
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Match the term to the correct definition.

A sum of money provided temporarily on the condition that the amount borrowed be returned, usually with interest

The price of using someone else's money

The total cost of credit to a consumer including all fees as well as the interest paid (finance charges) on the loan

A small, short-term loan intended to cover a borrower's expenses until his or her next payday

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Why it is important for consumers to know the APR on a loan?
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Question: 1—2—3…6


Discussion Board Topic: Understanding Payday Loans: A Public Service Announcement

Write a short public service announcement (commercial) aimed at high school students outlining the drawbacks of using a payday loan and post it on the discussion board.

Go to the discussion board and post your public service announcement.

Conclusion

Like Enrique at the beginning of our story, when people don't have enough money to buy the things they want, sometimes they get the money they need by taking a loan. While people often borrow from friends or banks, many people take short term loans from Payday Loan companies – these companies might be quick and convenient sources of loans, but they are very costly. It's a good idea to shop around to get the best price – even for loans. And remember – the most effective way to find the true cost of a loan is by calculating the annual percentage rate (APR).