EDPUZZLE: Predatory Lending            
Payday lenders don’t actually have a giant mousetrap strapped outside of their buildings to warn you of possible danger, so it’s better for you to understand how they work. Watch this video and answer the questions on your worksheet.

VIDEO: The Surprising Logic Behind the Use of Payday Loans          
In this video, Lisa Servon, a professor at the University of Pennsylvania, provides an alternative perspective on the use of payday loans. Watch and then answer the questions on your worksheet.

ARTICLE: Possible Alternatives to Payday Loans
Let’s say you’re just starting out on your own as a young adult and you run into some trouble. You need $200 because the price of gas and groceries has gone up and your budget has run out for the month. Read this article to find some possible solutions, and then answer the questions on your worksheet.

LEARNING TARGETS:

• I can explain what a payday loan is and how it can cause users to fall into a cycle of debt.
• I can identify what financial need payday lenders are meeting and why consumers use payday loans.
• I can compare the price of borrowing money using various loan and credit products.