Payday – or short-term or ''fast'' - loans are advertised widely and may seem very tempting if you need cash quickly to pay bills or debts. But how much is that ''quick fix'' really costing you?
The reality is, they're expensive (you’ll end up paying back a lot more than you borrowed) and they can quickly become a debt trap, especially if you’re already in financial difficulty or on a low income. Enter into payday loan agreements with care.
A payday - or short-term - loan is a loan of up to $2,000 from a commercial lender (banks and other deposit taking institutions are exempt) that is paid back from between 16 days and 1 year.
Before you take out a payday loan, make sure you understand the risks, and consider the cheaper, less risky alternatives first.
Don't despair! If you're having trouble repaying a payday loan (or several payday loans), follow these steps.