Payday lenders make money both by providing one-time assistance during a time of financial need and by keeping borrowers in debt. They often encourage repeat borrowing by charging high interest rates and fees, making it difficult for borrowers to fully pay off their loans. Therefore, all of the above options are correct.

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Payday Lenders

Question 41

Multiple Choice

Payday lenders

A) make money by providing one-time assistance during a time of financial need.
B) make money by keeping borrowers in debt.
C) encourage repeat borrowing.
D) all of the above.

Correct Answer: