Savings app aims to combat predatory payday loans
Share Now on:
Savings app aims to combat predatory payday loans
Payday loans are a short-term, high-cost way to borrow money; 12 million Americans used them last year, often for one-off expenses like car repair or medical bills. According to the Consumer Federation of America, the loans typically run at about a 400% annual interest, and finance charges can range from $15 to $30 on a $100 loan.
There are now a growing number of efforts underway to help consumers avoid the need for those kinds of loans. One of them is Onward, a program still in pilot stage that allows workers to save small amounts of money over time, building a small nest egg for emergencies and creating credit.
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
