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If Lily takes the Payday Loan, then she will be adding another debt payment to her budget and will eventually have to find a way to pay it off. How could Lily
get trapped in an inescapable cycle of borrowing money when using this type of loan?
If she can't pay then she will be thrown in jail hence the word "inescapable".
Previous
Statistics show that most Payday Loan borrowers do not have the funds available when the loan amount is due, and renew their loan several times.
This continues to add more fees and interest to the loan amount, thus making it harder and harder to find the money to repay it.
She will have to borrow money from friends or family but then she would still have to pay them back. This is called "the hampster wheel of debt":
Lily will need to wait for some type of cash infusion (like a tax return), before she can pay back the loan.