If you need a payday loan, it pays to shop around for the best rates. Look for a lender that uses soft credit checks, which don’t impact your score.

Payday lenders charge high fees, and they may roll over your debt into a new loan with higher interest rates. This can cause a spiral of debt and fees that can be hard to break free from.
Costs
Payday loans are expensive, and it's easy to get caught in a cycle of taking out new loans to cover the costs of the old ones. On average, a two-week payday loan has a fee of $15 per $100 borrowed and charges an annual percentage rate (APR) of almost 400%.

The fees include a flat fee upfront and a "rollover" fee that can cost an additional $10 or more. These extra fees add up quickly, and many people find themselves in a debt trap that is difficult to escape.

To avoid these fees, borrowers should consider alternatives to payday loans. Credit unions, banks and credit card companies often offer smaller loans that are more affordable and may not affect your credit score. Also, remember that it's a good idea to set up your bank account with overdraft protection so you don't incur bounced check fees.
Time-to-Cash
As the name suggests, payday loans are designed to be quick and easy to get. You can often apply online, and if you have the required documentation you can walk out of the store with cash in hand.

However, the ease of getting a payday loan can make it all too easy to borrow more than you can afford to pay back, and that can lead to a cycle of debt. The good news is that there are alternatives to payday loans that offer lower fees and more reasonable repayment terms.

Check with local charities and churches, which are sometimes able to lend small amounts of money at no cost or even offer free financial advice. Credit unions may also be able to lend smaller amounts and can have more lenient qualification standards than large national banks. You could also look into a prepaid debit card, which offers the convenience of a checking or savings account but doesn't charge interest like payday loans.
Repayment Options
The interest rates on payday loans can be sky-high. To help consumers compare costs, federal law requires that lenders clearly disclose the amount of your loan's finance charge as a percentage and total cost. This figure, called your Annual Percentage Rate (APR), includes the amount you borrow plus the lender's finance charge and MA other fees tacked on to the credit product.

If you can't afford to repay your payday loan, you may be able to request an extension or work out a payment plan with the lender. You can also consider alternative lending sources like credit unions, who typically have lower rates and more flexible repayment terms than payday lenders.

Some reputable lenders offer debt consolidation products that can help you consolidate payday loans and other types of debt into a single, personal loan with a more manageable rate and term. However, such products require a hard credit check and may have additional requirements like employment verification and documentation of your current debt load.
Borrowing Options
Depending on the situation, a credit union alternative loan might provide lower interest rates than payday loans. However, you must be a member to qualify. Many credit cards also offer cash advances with 0% interest for an introductory period, but you must repay the amount within that time to avoid higher rates.

Peer-to-peer lending may be another option for borrowing small amounts of money, although this type of loan can have higher interest rates than traditional banks or lenders. Another possibility is to work with your creditors on a payment plan, which can reduce monthly payments and help you get back on track.

In the long term, you should try to tackle the underlying problems that lead you to seek out payday loans. That might include debt counseling, developing a budget and starting a savings account. You might also consider other alternatives for access to quick cash, such as using a credit card cash advance app or borrowing from friends or family.