Payday loans are short term loans that help the borrower who gets a pay check or has a fixed income get through until the next pay day or receipt of fixed income.

• The money is usually available to the borrower the same day or within 24 hours.
• The amount of money that can be borrowed depends on the amount of the borrower's pay or fixed income. Generally amounts range from $500 to $1,500.
• Interest rates are high. Fees may also be payable.
• There is generally no background or credit check required.
• Loans can be repaid by predated check or automatic withdrawal from the borrower's account. (These methods are described in more detail below).
• Payday loans can be accessed through local lenders who are generally check cashing companies or online.

On the downside, interest rates on payday loans are very high. There may also be fees that have to be paid. Payday Loans should only be used when absolutely necessary.

If you feel that a payday loan is your only option:

• Compare interest rates, fees and penalties, and other terms, before saying "yes."   Some credit unions offer payday loans with low fees. The internet makes comparison of different lenders easy. (see the section below about internet sites).

• Try to borrow only as much as you can afford to repay with your next paycheck.

• Know when your payment is due and be sure to repay the loan on time and in full. Not repaying in full usually means the lender charges very high additional fees that becomes a cycle that is difficult to get out of.

• Try to plan for the future by creating a budget that includes an emergency+fund for unexpected expenses.  (To learn how to create a budget easily, and live within one, see the documents in "To Learn More."

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