RALEIGH (WTVD) -- Payday loans are illegal in North Carolina, but people across the state continue to lose money to loan companies.
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Payday lenders cannot operate physical stores in the Tar Heel state, but many of them are offering money online.
Before you agree to a payday loan, here are some things to consider:
Interest rates: Annual rates for some loans can run as high as 400 percent
Payment schedule: You may feel like you are paying the initial loan amount back quickly, but extra fees can add up and keep you making payments longer than you expected
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Do your research: Look for reviews and testimonies about the company to see if other customers have had any problems
Default terms: Make sure you know what would happen if you cannot pay the loan back according to the terms. Penalties for defaulting can cause even more debt and have a huge impact on your credit