Payday Lending: time for you to Crack the Trap in Minnesota
The payday lending business model fosters harmful serial borrowing and the allowable interest rates drain assets from financially pressured people while some borrowers benefit from this otherwise unavailable source of short-term and small-amount credit. The average payday loan size is approximately $380, and the total cost of borrowing this amount for two weeks computes to an appalling 273 percent annual percentage rate (APR) for example, in Minnesota. The Minnesota Commerce Department reveals that the typical cash advance borrower takes on average 10 loans each year, and it is with debt for 20 months or higher at triple-digit APRs. As a result, for a $380 loan, that equals $397.90 in fees, as well as the quantity of the key, which can be almost $800 as a whole fees.