Americans & financial literacy
December 29, 2008 | Chicago Tribune, alternatives, customers, industry, personal finance | Comments (0)Not a pretty picture according to the Chicago Tribune:
According to a financial literacy survey by the Center for Economic and Entrepreneurial Literacy, which advocates personal finance education, just a quarter of adults knew that overdrawing their checking account, or bouncing a check, for a quick $100 was more expensive than a payday loan, credit card advance or emergency wire transfer. More than half said they thought a payday loan would be pricier.
Understanding the cost of a mortgage was another challenge. Only a third knew that a home buyer could expect to pay $350,000 in interest for a $300,000 house over the course of a 30-year mortgage with a 6 percent yearly interest rate.
The Payday Pundit bets that a survey of payday loan customers would show that they know payday loans are less costly than bounced check fees and overdraft protection.
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