There is no hiding the fact that times are tough and in tough economic times, unexpected expenses can be a real problem.  But when the credit cards are maxed out and there are no other alternatives, should you turn to payday loans?

Payday Loans are referred to by many names.  They are often referred to as cash advance loans, check advance loans, post dated check loans, or deferred-deposit check loans.  Whatever you call it, they all mean the same thing – a small, short term loan with a high interest rate.

As easy as payday loans are to acquire, you should weigh the pros and cons before proceeding.

Payday loans come in handy for those that need fast cash and have no other alternatives.  The advantages are that you can usually get funds deposited into you bank within 24 hours.  There are no credit checks and you can complete the entire process in about 20 minutes online.

The downside is the interest that are paid on these short termm loans.  Governments on just about every level express their concern about these types of loans, stating that they prey on people in a hardship.

A $100 two week advance will cost you about $115 to repay.  Not bad for a quick one or two week fix when you need the cash, but what if you can’t afford the payback when it’s due?  These loans can easily be rolled over for another couple of weeks if you fall short of funds again.  In fact, you can keep doing this indefinitely, but the interest keeps piling on, and that interest isn’t low.  The average APR on a payday loan can reach 391 percent.  If you roll over three times, that $15 fee that you were to pay on your $100 advance is now going to cost you $60.

Payday loans are controversial because of their high interest, but they do fill a void for those with bad credit and no alternatives.  If you decide to get a payday loan, you should be sure to pay it back in a timely manner.