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How do payday loans work who uses them and are they a problem?
Payday Loan.
A type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. The borrower typically writes a post-dated personal check in the amount they wish to borrow plus a fee in exchange for cash. The lender holds onto the check and cashes it on the agreed upon date usually the borrower's next payday.
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Payday loans are short-term loans that are easy to get but they are often expensive. Find out what to expect and see alternatives.
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