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Traditionally, a payday loan was a loan that was repaid on or before the borrower's subsequent payday. Studies have shown that payday borrowers are more most likely to have credit card delinquency, unpaid health-related bills, overdraft costs top to closed bank accounts, and even bankruptcy. When these concerns are struck by unexpected or emergency costs, a lot of customers who need to have only a few hundred dollars might consider a payday loan. But for almost all payday borrowers, payday loans' triple-digit interest prices only worsen - not improve - their finances. Strategically located in low-earnings neighborhoods, payday loan shops reap millions in income from a item designed to force borrowers into repeat loans.
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