Payday loans are a type of short-term loan. The loans, which are for small amounts, often $500 or less, are designed to be paid back when you get your next paycheck. <\/p>\n

While they evolved from criminal \u201csalary lending\u201d practices in the early 20th century, these loans really took off in the 1990s, when there were few small loan lenders. The shortage is sometimes blamed on banking deregulation in the 1970s and 1980s, especially the proliferation of state exemptions from \u201cusury caps,\u201d which had limited the maximum annual percentage rate (APR) for single repayment loans. Today, the bulk of these loans are taken out to cover rent or similar repeat expenses, with as much as 80% of them being \u201crenewed or quickly reborrowed,\u201d according to the nonprofit Pew Charitable Trusts. <\/p>\n

The loans are notorious as an expensive way to acquire money. Consumer advocates worry that they perpetuate debt cycles. <\/p>\n

Table of sencoproperties<\/p>\nToggle<\/span>

How do payday loans work?<\/a><\/li>
Risks of Payday Loans: What You Should Consider<\/a><\/li>
How much do payday loans cost?<\/a><\/li>
What Are Payday Loan Interest Rates?<\/a><\/li>
Do payday loans build credit?<\/a><\/li>
What do I need for a payday loan?<\/a><\/li>
What happens if I can’t repay a payday loan?<\/a><\/li>
Payday loan alternatives to consider<\/a>