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Payday loans are designed to be short term loans of £100 to £1,000 that – as their name suggests – are designed to tide you over to the next payday.
Our latest Freakonomics Radio episode is called “Are Payday Loans Really as Evil as People Say? ” (You can subscribe to the podcast at iTunes or elsewhere, get the RSS feed, or listen via the media player above.). Critics — including President Obama — say short-term, high-interest loans are predatory, trapping borrowers in a cycle of debt.
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