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I only have 5 dollars, but I need candy for my school project. I do not get paid from my job for another week. The project requires at least 20 dollars worth of candy.
My local candy store will give me all the candy I need for my project for only 5 dollars down. I will need to pay 5 dollars a week for the next 3 weeks.
When I got home, I read through the papers that the cashier gave me. It said that I would need to pay one dollar a day for everyday that I was borrowing money.
I told my mom about the loan and she said that it was called a Payday loan. She said that these are legal but not with this high of an interest rate. I would be paying $41 total!!
I went back to the store and told them that it was illegal to make me pay this much. Also, that I would file a complaint to the BBB.
The candy store fixed my interest rate, I would only need to pay a dollar a day for every week I was borrowing money. My total is $23 of my projects candy.
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