Payday loans, rent to own, car title loans…these are all considered PREDATORY LENDING practices. What does that mean? Basically, the companies that offer these “loans” are predators! They prey upon people (often those of low or modest income) who need cash quickly or find themselves in desperate financial need.
So what is the problem with them? Why shouldn’t you borrow money from quick cash schemes? Because they charge ridiculously high interest rates and fees, that add up very quickly. Sometimes you can owe 400% more than you borrowed when it’s all said and done.