I was recently reading an article about Payday Loans written by my guest, Aaron Crowe and I knew I had to have him on the show! Aaron is a personal finance freelance writer that writes for many different financial blogs and media sources. In the article entitled, “Smarter Alternatives to Payday Loans,” Aaron researched the fact that a typical two-week payday loan with a fee of $15 for every $100 borrowed can equate to an annual percentage rate of almost 400%! That is an incredibly high interest rate to pay on a loan that’s meant to be for only a two-week period of time, and just another example of how American consumers are being continually caught in a debt trap that keeps them chained in debt at a time when they need help the most! Because these loans are confusing and not a viable option for most consumers, they are currently being reviewed by the Consumer Financial Protection Bureau and it will be interesting to see their take on this popular short-term option.
Join me today as Aaron and I discuss smarter alternatives for individuals facing financial hardship that can help consumers beat the financial debt traps of predatory lending and help guide you to a more empowered financial life!