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How Payday lending works. Created by Sal Khan. Watch the next lesson: ...

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Payday Loans Online Not As Good? This type of loan shows you that for a couple weeks you can borrow “X” and you will only owe “X” per $100 borrowed. So let’s say for example purposes you take out a $500 payday loan and that company charges you $25 per every $100 borrowed. 5 times $25 equals $125 fee to borrow.

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