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Why are payday loans such a profitable business?

1 Answer

1 vote

Answer:

payday lenders make most of their profits from borrowers who cannot pay off their loans, and instead renew them repeatedly, quickly paying more in fees than they originally borrowed.

Explanation:

So when someone asks for a loan the Payday people make more off of the borrowed money because they renew it and get more money than what was originally asked or borrowed.

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