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Consumers may be mislead into thinking that payday loans are a cheap and convenient way of borrowing money for the short term. However, with average annual interest rates ranging from 390% to 871%, payday loans are no bargain. Consider this example: Loan: $200; 15% fee: $30; Amount that must be repaid to 

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Mar 25, 2014 The Pew Charitable Trusts says the average loan size is $375, but most people can only afford to pay $50 in a two-week period after paying other regular expenses. “Repeat borrowing is the norm, because customers usually cannot afford to pay the loans off on payday and cover their other expenses,