Payday Loans and Check Cashing Alternatives

A Payday Loan is a small, short-term loan at an extremely high interest rate, usually a cash advance loan secured by a personal check. These services may also be known as check advance loans, post-dated check loans or deferred deposit check loans.

The finance company charges a fee to the borrower as a percentage of the checks value. If an individual writes a personal check for $115 to borrow $100 for 14 days, that $15 “fee” is equivalent to 391 % annual interest.

“Rolling-over” (extending) the loan past the original agreement can incur greater fees. If rolled over 3 times, the above example equates to paying $160 to borrow $100.


Explore small loans from a credit union, bank, employer, family member or friends. Always shop around for the best interest rates and terms, as well as the lowest penalty fees.

Consider the necessity of the loan. Try sleeping on it. You might be able to come up with a solution that doesn’t involve using a payday loan and could end up saving yourself quite a bit of money in the long run.

If you have any questions, would like to discuss your financial challenges, or are just looking for advice, please contact us at your convenience. As always, we are here to help and look forward to hearing from you.

1-877-OUT-DEBT (688-3328)

Debt Reduction Services and the National Financial Education Center
Debt Reduction Services and the National Financial Education Center
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6213 N. Cloverdale Rd. Suite 100 Boise, ID 83713