> These loans can be extremely risky because they're expensive: The national average annual percentage rate (APR) for a payday loan is almost 400 percent. That's over 20 times the average credit card interest rate.
> And often, borrowers can't pay back the loan right away. The Consumer Financial Protection Bureau found that nearly 1 in 4 payday loans are re-borrowed nine times or more, while Pew found it generally takes borrowers roughly five months to pay off the loans — and costs them an average of $520 in finance charges. That's on top of the amount of the original loan.
> And often, borrowers can't pay back the loan right away. The Consumer Financial Protection Bureau found that nearly 1 in 4 payday loans are re-borrowed nine times or more, while Pew found it generally takes borrowers roughly five months to pay off the loans — and costs them an average of $520 in finance charges. That's on top of the amount of the original loan.
500 + 520 = 1020