So what is a pay day loan? A payday loan actually is being referred as cash advance and check advance loan as well. Some also call it as a post dated check loan, while others would refer to it as a deferred deposit check loan. On the other hand, the Federal trade in the US would refer to it as a “costly cash” loan. But regardless of how you call it, or how you view such loan, a pay day loan is a short term loan, payable on your next pay check, but with high interest fees.
Pay day loans is so popular now. This is due to a number of reasons, but normally, the most common reason for this are for payment of emergency expenses. Now there are also advantages and disadvantages when it comes to obtaining a pay day loan, although the advantages outweigh the disadvantages.