Every LOAN Type Ranked by How Fast It Traps You
About this video
A $5,000 payday loan can balloon to $15,000 in just one year. In this video, we rank every major loan type by how fast it can trap you in a debt spiral, from fastest to slowest, so you know which loans to treat as emergencies only and which to never touch. Chapters: 00:00 The $5,000 Trap 00:11 Fee Trap 00:26 The Trap Criteria 00:42 The Fee Trap 00:58 The Pacing Factor 01:13 The $5,000 Explosion 01:27 The Trap's Design 01:42 Trap vs. Tool 01:58 High APR 02:13 Losing Your Car 02:26 The Middle Ground 02:40 The Hidden Risk 02:56 Third Fastest Trap 03:06 Auto Loan APRs 03:22 Owe More Than Worth 03:37 Student Loan Scale 03:52 Interest Starts Early 04:08 Slower Trap Ahead 04:24 Mortgage APR vs. Payday 04:39 Mortgage Debt: $12 Trillion 04:54 Design, Not Failure 05:08 Check Your Rate Now 05:22 The $5,000 Explosion 05:37 Personal Loan Penalty 05:51 Student Loan Scale 06:07 The Trap Continuum 06:20 Title Loan APR Range 06:33 Student Loan Average 06:46 The Trap Design Sources & further reading: ā¢ CFPB Payday Loan Report ā https://www.consumerfinance.gov/data-research/research-reports/payday-loans-and-deposit-advance-products/ ā¢ FTC Title Loan Facts ā https://www.consumer.ftc.gov/articles/vehicle-title-loans ā¢ Federal Reserve Consumer Credit Data ā https://www.federalreserve.gov/releases/g19/current/ ā¢ U.S. Department of Education Federal Student Aid ā https://studentaid.gov/understand-aid/types/loans/interest-rates ā¢ Freddie Mac Primary Mortgage Market Survey ā http://www.freddiemac.com/pmms ā¢ Pew Charitable Trusts Payday Lending Research ā https://www.pewtrusts.org/en/research-and-analysis/reports/2012/07/19/payday-lending-in-america
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