payday lending
Payday lending is a type of short-term borrowing where individuals can take out a small loan, typically to cover unexpected expenses or bills. Borrowers usually write a check for the loan amount plus fees, which the lender cashes on the borrower's next payday. While it provides quick access to cash, payday loans often come with high interest rates and fees, making them expensive. If borrowers cannot repay on time, they may incur additional fees, leading to a cycle of debt. This practice is regulated in many places due to concerns about its impact on financial stability.
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Payday lending is a type of short-term borrowing where individuals can take out small loans, usually for urgent financial needs, with a promise to repay by their next payday. These loans often come with high interest rates and fees, leading to a cycle of debt if borrowers cannot repay on time. While they can provide quick cash, the costs can escalate rapidly, making them a risky option for many. Regulations vary by location, with some areas imposing limits on interest rates to protect consumers from predatory lending practices.