BTCC
/
BTCC Square
/
Global Cryptocurrency
/
The Predatory Trap of Payday Loans and the Search for Alternatives
The Predatory Trap of Payday Loans and the Search for Alternatives
12
2
BTCCSquare news:
Financial emergencies are a harsh reality for many Americans, with 37% needing to tap into emergency savings in the past year. For the 24% without any savings, the desperation for quick cash often leads to payday loans—a product regulators flag as predatory due to exorbitant APRs and short repayment windows.
A typical $100 payday loan carries a $15 fee over two weeks, translating to an APR nearing 400%. For larger sums—$1,000 to $2,500—the repayment burden becomes unsustainable. The industry thrives on cyclical debt, trapping borrowers in a loop of fees and refinancing.
By:
