Illegal payday loans could cost North Carolinians hundreds

RALEIGH (WTVD) -- Payday loans are illegal in North Carolina, but people across the state continue to lose money to loan companies.

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

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