What Is a Payday Loan?

Payday loans are short-term cash loansin which payment is due typically due withintwo weeks—or close to your next payday.The problem arises if youcan’t repay the loan on time."The lender might offer to let you roll yourcurrent loan over into a new one," saysColleen McCreary from Credit Karma.This leaves you with an evenlarger loan to pay off.Payday loans, while they mayseem small, come with high feesas well as high-interest rates.Because payday loans have suchshort repayment terms, thesecosts translate to a steep APR.Payday loan APRs areusually 400% or more.Instead of opting for a payday loan, considerother alternatives first, such as asking foran extension or a small personal loan

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