Which of the following statements is TRUE about payday loans?
A. They are harder to pay back because of low fees and high interest rates.
B. They are harder to pay back because of high fees and high interest rates.
C. They are easier to pay back because of lower fees and higher interest rates.
D. They are easier to pay back because of lower fees and lower interest rates.
Which of the following statements is TRUE about payday loans?
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The correct answer is B. They are harder to pay back because of high fees and high interest rates.
### Explanation:
Payday loans typically come with very high interest rates and fees, which make them more difficult to repay. Borrowers often struggle to pay back the amount owed by the due date due to these costs, leading them into a cycle of debt. It’s always important to carefully consider the terms and the total cost of borrowing before taking out such loans. If you have more questions or need further clarification, feel free to ask!