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Small personal loans work in much the same way as other types of personal loans in that you are charged certain fees and rates in order to borrow money from a lender.

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300% or even higher – that most borrowers get trapped in a cycle of debt. Four out of five payday loan borrowers roll over or renew their loans, according to the consumer financial protection bureau..

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The protections would cover products including payday and other short-term loans, auto-title loans and some high-cost installment loans. Rates on such products, it says, can be as high as 390.

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