The Truth about Payday Loans: Sky-High APRs

Photo by Justin Sullivan/Getty ImagesWhen you’re faced with an unexpected expense, a payday loan can seem like the perfect solution. It’s quick and easy to apply for, and you can get the money you need in just a few hours. But before you take out a payday loan, be sure to read the fine print. Payday loans come with sky-high APRs, and if you can’t pay them back on time, you’ll end up paying even more in fees and interest. So is a payday loan really worth it?

What are payday loans and how do they work?

A payday loan is a short-term, high-interest loan that’s typically due on your next payday. The idea is that you’ll use the money you borrow to cover unexpected expenses or to tide you over until…