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Released: August 10, 2011
How online payday loans can get you in trouble
Source: Sheryl Nance-Nash, Daily Finance (Free Registration)
Kim Higdon separated from her husband of more than 25 years, taking nothing but her clothing and daughter. She managed to scrape by until she broke a tooth. The dental bill took all the money she had, and she had to borrow $500 from an online payday-loan provider to cover rent. That loan was expensive: She paid 798% interest for the six days it took for her paycheck to arrive so she could pay off her loan. As absurd as it sounds, Higdon got off lucky compared to many other borrowers of online payday loans. At least she was able to pay off her loan, albeit at nearly nine times the amount she borrowed. For many others, the cycle can quickly morph into a mess.Read Full Article: How online payday loans can get you in trouble
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