Payday loans are small, short-term loans that come with a very high cost. High interest rates and fees combined with very short terms can make payday loans very difficult to repay. According to the FTC, there may be better alternatives that you should consider before taking out a payday loan.
If you or someone you know is in financial hot water, consider these options: realistic budgeting, credit counseling from a reputable organization, debt consolidation, or bankruptcy. Debt settlement is yet another option. How do you know which will work best for you? It depends on your level of debt, your level of discipline, and your prospects for the future