Payday Loans

You may have heard them offered: fast, easy cash that may just save you in a financial emergency. Essentially, it's a short-term loan where someone goes to a payday lender, figures out how much they need, and a finds out the fee that will come with repaying it. A check is written for the total amount, and the lender puts that check on hold until it's time to repay the loan (typically around 2 weeks, sometimes more). They then cash the check. The idea behind this is that if you are currently short some amount you suddenly need, you can get an advance income via these loans, then pay them back with your next paycheck, hence the name “payday loans.” The problem with payday loans, however, is that it assume you can pay it in full by your next payday, and the ridiculous interest fees are what put you in trouble. If you thought bank loans and credit car bills had bad interest, the interest alone helps keep loan “sharks” afloat. Between the fees and the interest, you're shooting yourself in the foot every time you use one. Unfortunately, they prey upon the financially unstable, meaning the very people who are at risk for getting eaten alive by fees and interest are the only ones who really need their services. The simple conclusion: stay away.