Payday Loans

A payday loan is a small, short-term loan that is intended to cover the borrower’s expenses until his next pay check.  A borrower in need of funds receives a cash advance on his or her paycheck.  The next time the borrower gets paid he must pay back the loan as well as all interest and fees.

Laws vary from one state to another, but in general the amount of interest charged on payday loans is far higher than you would expect elsewhere.  You should never borrow more than you can afford to pay back, and always do your homework to make sure you are borrowing from a reputable source.

Due to the high interest and fees associated with payday loans, they are usually not the best option.  However, the fact that there is a definite market for these services can not be denied.