If you have been following our blog, you know of the financial dangers associated with borrowing money through payday lenders. On the surface, payday loans seem to provide the perfect solution for those looking to obtain funds before they receive their next paycheck. Since the loans are covered by the borrower's upcoming pay, the borrowed money will be returned in a short period of time.
A payday loan is supposed to be short term loan that provides quick cash to people with debt problems. They are typically backed by the borrower's next paycheck. Borrowers provide the lenders with either a post-dated check or the routing and account number to a bank account so the loan can be repaid on the next payday.