When you see payday lenders pop up in a community, it’s no secret that residents are struggling. Payday loans come with high interest rates that can add up quickly.

Typically, you’ll give the lender a check that they cash or use to debit your bank account. You’ll also pay a fee. Many lenders let you roll over the debt, racking up additional fees.

They’re easy to get

One of the reasons that payday loans are so popular is that they’re extremely easy to get. Consumers can apply online or at a physical location with little more than an ID, paycheck stub and bank account number. They can receive their loan amount in cash on the spot or have it deposited into their bank account within hours, depending on state law.

They also don’t check a borrower’s debt-to-income ratio or take existing debts into account. This can lead to a cycle of debt that’s difficult to break.

Rather than applying for a payday loan, consumers can try to work with their creditors to set up a payment plan that will help them manage their expenses and avoid additional fees. They can also seek financial advice from non-profit agencies that offer free or low-cost credit counseling services. They can also consider alternatives such as personal loans and credit unions, or even cash advances from their employers.

They’re fast

Payday loans seem fast when you need money to get through the month, but they can have hefty fees and interest rates. And if you’re not careful, you could end up in a cycle of payday loan debt.

A payday loan is a short-term, high-interest personal loan that is due on your next paycheck. These loans are often marketed to people who don’t qualify for other financial products because they have poor credit or no credit. Payday lenders may also charge excessive fees and rollover charges if you don’t repay your loan on time.

Fortunately, you can avoid the costly trap of payday loans by obtaining your loan from a licensed lender. A licensed payday lender will only send the funds to you directly, instead of through a middleman. And unlike unlicensed payday lenders, a licensed lender will not report your loan to the credit bureaus. This can help you avoid getting caught in a vicious cycle of payday loans and tennessee credit card debt.

They’re convenient

Payday loans are easy to get – you can just walk into a store, sign some papers and write a check. However, there are other ways to deal with short-term money problems, and many of them are much less risky than payday loans. Credit counseling agencies offer free or low-cost help to borrowers, and they can suggest payment plans that might obviate the need for a payday loan.

You can also look for alternatives to payday loans at financial centers, check-cashing places, pawn shops and some banks. These lenders typically require that you write a postdated check to them for the amount of your loan plus fees, and they cash the check or electronically debit your checking account when the loan comes due. Many also charge triple-digit interest rates. If you find one that doesn’t, consider reporting it to your state’s consumer protection agency or the Financial Ombudsman Service. The latter has information about how to make a complaint about payday loan lenders.

They’re expensive

While payday loans may seem like an easy solution to a short-term financial problem, they are often quite expensive. In fact, according to Bennett, a payday loan comes with an average interest rate of 391%.

These high rates are a result of the amount of money borrowed and how long it takes to repay the loan. Payday lenders also charge multiple fees each time the borrower rolls over a loan. This can quickly add up and lead to debt problems.

Fortunately, there are other options for people who need quick cash. Many credit unions offer personal loans with much lower interest rates than payday loans, and they report to the credit bureaus, so borrowers who pay on time can improve their credit. Additionally, some banks now offer small-dollar loans for amounts up to $1,000. This type of loan is similar to a payday loan, but it generally has a longer term and requires less paperwork.