|
Many people ask why the cost of a payday loan is so high. There are a couple of key factors for this. First, the lenders take a huge risk making this type of loan. On average, 60% of people taking out a payday loan never repay it. This is factored into the cost of the loan and passed onto all consumers needing this type of product. The other main reason for the high cost is fraud. With these financial products being so easy to obtain, there is a high level of fraud. Fraudsters will often fake their information to obtain a loan and once they have the money, they simply disappear and apply again with new identifivation.
|
|
