Through a cool blog called Cool Infographics I learned about PayDayLoans.org. The purpose of PayDayLoans.org is to educate people about the risks of taking a payday loan. They try to educate visitors through a combination of articles, infographics, and interactive guides. I knew that payday loans had obscenely high APRs but what I didn’t know, and learned from their infographic, is that in many states the APR for payday loans can exceed 1000%. The most accessible and educational resource offered by PayDayLoans.org is their How Payday Loans Work interactive tour.
Applications for Education
If you teach consumer education lessons, PayDayLoans.org is a great resource to add to your collection. As part of a larger lesson on consumer borrowing you could have students compare the risks of payday loans with the risks of credit card debt.