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How Payday Loans Work. Payday loans charge borrowers high levels of interest. These loans may be considered predatory loans as they have a reputation for extremely high interest and hidden provisions that charge borrowers added fees. Obtaining a Payday Loan.
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The Pew Charitable Trusts found in 2013 their study on the ways in which users pay off payday loans that borrowers often took a payday loan to avoid one of these alternatives, only to turn to one of them to pay off the payday loan.
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