Written by: Guest | Best Company Editorial Team
Last Updated: February 24th, 2020
Guest Post by lendup.com
As many as 12 million people use payday loans in the United States every year. For many, a payday loan represents a backup plan to resolve a financial emergency or cover an income shortfall, but it can also be a risky product for consumers who may not understand the ins and outs.
Unfortunately, many consumers don’t have all the information about payday loans and make mistakes resulting in unexpected and excessive fees.
Many unscrupulous payday loans rely on this. They make money by lending to people who trigger extra fees because they don’t know how the product works or because they can’t afford to pay the loan back on time. Lenders have been so predatory that most states in the United States regulate payday lending or have banned payday lending altogether.
This infographic outlines the most common pitfalls of payday loans and what actions you can take to avoid them. Source: LendUp