A “payday loan” is usually a small loan taken out in the amount of your next paycheck. They are short term loans with very high interest rates, usually used by people with very poor credit or in an emergency.

The payday loan will give you a specified amount, usually less than your next paycheck will be for, but then require you to sign your next paycheck over to the payday loan company as soon as it is received. The extra money is considered interest on the loan and usually very high.

Where do I get a payday loan?

There are many payday loan companies in the United States, some are even chain stores for payday loans. Most are located in strip malls that are highly visible from the street. It’s important to pick a reputable payday loan company if necessary, never go with a fly by night vendor.