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During these difficult economic times, consumers are increasingly turning to solutions to supplement financial emergencies. Pawn shops are seeing a record amount of business. A current article on msnbc.com graphically illustrates the problems consumers are facing these days. Meanwhile, payday loans are becoming increasingly popular, primarily because they provide an easy, hassle-free way to obtain a fast and temporary emergency loan. For example, if you are offered a new job but need quick money to bridge you until your next payday, a payday loan could offer a fast solution. Even people with a bad credit history could apply for a loan and pay it back when they receive their first pay check. But it’s important to make sure that the loan is paid promptly so you don’t incur higher charges and fall into a worsening credit trap.

Have you ever been hit with an unexpected expense, like a big car repair bill? Maybe it was a medical bill that just couldn’t wait. How did you handle it? Did you use your credit card and pay for it, including interest, over a period of time? Here’s a sobering thought. Perhaps you don’t have a credit card. Or maybe you’re one of the millions of people who already have too much debt, and you’re already “maxed out” on your credit card. Do you have friends to borrow from? Most of us don’t like to do that – and most friends don’t like that, either. Now, what do you do? You could…

A payday loan is a small, short-term loan that is intended to cover a borrower’s expenses until his or her next payday, and is never intended to be a long term solution. This is what the media isn’t focusing on: these loans are a very convenient way to get the money you so desperately need until your next paycheck — that’s it, nothing more. The amount of these loans typically fall anywhere between $100 and $1500, and can easily be paid back with most people’s weekly, or bi-weekly, salaries. The fees for these loans tend to vary, but are usually very minimal — some lenders may charge a flat fee while others raise or lower the interest rate depending on the length of the payday loan. It’s always best to pay your loan off as fast as possible, and most people agree on this: this is what makes the payday loan industry so popular.

There are two very different types of payday loan companies: the first is the physical storefront (brick & mortars) that you see everywhere from the malls and downtown areas, to neighborhood shopping centers. The second is the newer version: online payday loans. If you are confused about which one to use, read the following benefits of each, and hopefully you will gain a better understanding of which one to do business with: