Bell Ringer Assignment

• Explain how a typical payday loan works. How does this practice differ from the "one and done" model initially used by these lenders?
• How can the annual interest rate end up going as high as 400%?
• Describe the typical targeted borrowers of payday loans. How has the US military become involved in this issue?
• What consequences can borrowers face if they default on their payday loans, with respect to their bank accounts and cars?
• Describe several alternative avenues to borrowing from payday lenders, and explain why they are recommended by Mr. Calhoun.