Consider the Risks

A payday loan costs at least 10 times as much as a small loan from a traditional bank. You may end up paying an APR of a certain percentage.

If your check to the payday lender bounces, both the bank and your lender may charge you bounced check fees. In some countries, a payday lender might threaten you with prosecution for writing a bounced check.

What if I can’t pay on the day my loan is due?

Your Payday lender will withdraw the amount due from your account on your next payday. You have the option of extending the payment until your next payday by paying at least enough to cover interest earned to that point (usually the finance charge previously disclosed). You may also pay as much extra as you would like to reduce the principal balance. You may be given some options.