The interest rate for payday loans is actually not that high, it’s usually only around 1% a day or less. What seems high is the APR. The average payday lender in the UK charges around 1,700% and some charges as much as 5,000%. read more
Payday loans are marketed towards low-income households, because they can not provide collateral in order to obtain low interest loans, so they obtain high interest rate loans. The study found payday lenders to target the young and the poor, especially those populations and low-income communities near military bases. read more