A report from The Pew Charitable Trusts, Payday Lending in America: How Borrowers Choose and Repay Payday Loans, reveals that people choose these loans to avoid outcomes like long-term debt, borrowing from family or friends, overdraft fees and cutting back further on expenses.

But the average loan requires a repayment of more than $400 in two weeks, when the average borrower can only afford $50. When borrowers have trouble paying off the loan, they return to the same choices they initially tried to avoid, according to a survey that led to the report.

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