Payday Loans: How Helpful are They?

Payday loans used to be rather popular for the prospect of "stretching your paycheck" but people quickly discovered that's not how it works and fell out of love with the practice. Now it is used as a last resort and should be handled with caution and heavily considered before making a payday loan.

When you need to pay for something before you get your paycheck and can't afford what you need without said paycheck payday loans are an option. Payday loans mean you are given a loan but come payday you have to pay back 400% the amount you borrowed. Rather than stretching your paycheck you are spending it as soon as you got it. The average borrower takes out $375 and pays an additional $520 in interest and fees.