Payday loans represent a behemoth of an industry that rakes in $2.9 billion each year and contributes a whopping $6.4 billion to the overall economy. In fact, more than 12 million Americans take out payday loans per year to help them meet a variety of financial obligations, from recurring expenses to unexpected cash emergencies.
Despite the supposed benefits of payday loans though, the reality is that most of these lenders make their money from ultra-high interest rates and fees that are more likely to keep consumers in debt traps than they are to provide any kind of real financial assistance.
With this in mind, most financial professionals strongly recommend avoiding payday loans altogether, and instead suggest borrowing from a family member, asking your employer for a pay advance, or selling unwanted items. But if you have no other options and must take out a payday loan, be sure to read through our in-depth payday lender reviews so you’ll be as informed as possible.