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Be Ready to Avoid Payday Loans

A payday loan is a high-interest, unsecured loan. In these videos and exercises, you will learn the cost of taking out a payday loan as well as other options to avoid using payday loans.

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You will also learn how to avoid getting caught in a never-ending cycle of debt.

Complete four activities. Hint: There are videos so you may need headphones.

Submit your work to earn the 'Understanding & Avoiding Pay Day Loans' badge.

When you earn the badge, you unlock the opportunity to compete for scholarship dollars. You can also share your badge on your resume and social media. When you click on the badge, it shows you what skills you practiced in this Playlist and the language you can adapt to your resume.

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Badges you can earn for this challenge

BE READY TO AVOID PAYDAY LOANS - BE READY TO AVOID PAYDAY LOANS - earners learned basic payday loan avoidance
Age: 2 - 100
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Activity Directions

Payday Loan Interest Calculator

Description:

Suppose your car breaks down and you need $500 to get it fixed NOW or you can't go to work. You get a pay day loan with a $75 fee to borrow the money for 2 weeks. Sounds pretty good right? WAIT! Let's calculate what APR or annual percent rate you will pay in interest.

Use the Payday Loan APR Calculator link to calculate your annual percentage rate from this example. Click on the link to the right and enter the loan amount, fee and time frame and click calculate.

How much was your APR? Does that seem reasonable? A person with good credit can get a personal loan with an APR around 6-36%. Take the following quiz to test your knowledge,

Age: 0 - 100

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Here's what happens next:

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