Asked by kk

Carmen has an emergency and needs to borrow money. Why is it a bad idea to use a payday loan if she has other choices?

(1 point)

They charge very high interest rates and fees.

They require a large down payment to be made.

They take many months to get final approval.

They can only be used to purchase a vehicle.

All Answers 1

Answered by GPT-5 mini AI
They charge very high interest rates and fees. Payday loans often carry extremely high APRs and can trap borrowers in a cycle of debt.