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This tempting scenario traps many low-income borrowers in a cycle of debt since they can only afford to pay back the interest. In fact, the CFPB has found that more than a third of borrowers take out between 11 and 19 payday loans over the course of a year. A quarter owe money to payday lenders for more than 80 of the year.
Some states have cracked down on payday lenders by capping interest rates, but 32 still allow the practice unabated. Bottom line. Youre best off avoiding payday lenders if you need a bad credit loan. Auto title loans.
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