Louise got caught in a cash flow trap and desperately needed money quickly. Unfortunately, she didn't shop around and she went to a _____. As a result, her annual percentage rate was higher than 780%!

Question

Quizplus · Accepted Answer

Payday loan companies are known for charging incredibly high annual percentage rates, often exceeding 400%. In Louise's case, her APR was even higher, reaching a staggering 780%. It would have been better for her to explore other options, such as borrowing from friends or family or seeking assistance from a non-profit organization. Choosing a payday loan company in her desperate situation only worsened her financial situation in the long run.

Louise Got Caught in a Cash Flow Trap and Desperately