Although taking right out a pay day loan might appear such as a solution that is quick a temporary shortfall of money, when you look at the greater part of instances, it really delivers borrowers deeper into debt. In reality, the Consumer Financial Protection Bureau (CFPB) issued a study showing that in a 14-day duration, 80% of borrows wind up being forced to rollover their cash advance or submit an application for another loan to pay for the loan that is payday. Meaning just 20% of borrowers already have the funds to cover back once again their pay day loan.
So, what goes on when you are on the list of 80% of borrowers who canвЂ™t manage to spend their payday loan back? Do you want to face prison time?