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Better math education

January 14, 2009 | Tucson Citizen, alternatives, industry, research | Comments (0)

In the Tucsan Citizen no less, a paper that hasn’t been kind to the payday lending industry:

Simple fees get translated into confusing annual percentage rates. A short-term payday loan doesn’t sound like a good solution when described as 391 percent annual percentage rate. But analyzed the same way, it’s a better idea than bouncing a check where common bank overdraft fees can be as much as 4,954 percent APR. (Actually, in both cases, the percentage fees are not accurate ways to describe the cost.)

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