What is a payday loan?

A payday loan, also called by many as cash advance loan,  a check advance loan, a post-dated check loan, is a small $50-$1000 short-term loan with very high interest rates.

Where can I get a payday loan?

Payday loan companies are everywhere in US and Canada. You can apply online or in person at any of the outlet run by payday loan companies.  As more and more people are using internet now a days, online payday companies are also becoming popular source for payday loans. One can apply with own convenience at any time and from anywhere with out even going through the hassle of going to the company office in person.  However, keep in mind that the same rules and laws are applicable to payday loans whether you apply online or in person.

Why to avoid payday loans?

The major disadvantage of payday loans is higher interest rate. It can be as high as 300% and if you are unable to pay at the schedule payment time, payday loan amount will increase very quickly. So be very careful before you apply for payday loan and if you think that you cannot pay on time, then considering other form of loan will be a wise decision.

Summary 

If you have to get a payday loan, make sure you don’t roll it over too many times – that’s when it starts to becomes a real problem. As you must of learned the lesson by now, it will be in your own interest to start building an emergency fund so that you you have an alternative and don’t have to get a payday loan in any emergency situation.