What is it about payday loans that makes them so popular? It’s fairly simple when you get right down to it. The payday loan companies feed on those folks that need instant money. The payday loan providers boast that their loans are fast, easy, and discreet, with the promise of no credit checks or faxing. Squeezed by financial circumstances, and with no other easy alternatives, a quick payday loan may seem like the only route …

“Fill out a web form, make a phone call, send a fax, and they wire the money into my bank account? Could it be that simple?”

Perhaps it is that easy to get the cash. It’s paying it back that can be painful.

The payday loan companies want to get that money into your hands as quickly as possible, so they can start the clock (and start making money from your circumstance).

So how much money will they make?

The amounts will astound you. A fraction of payday loan websites will let you see the fees up front, before you enter your personal information. But a great many sites will not allow you to view the fee schedules until after you’ve filled out their web form.

Here’s an example of the fees disclosed by two sites:

Payday loan site #1 will charge you the low fee (cough) of $185+ to borrow $1000 for 7-14 days. A $500 loan will cost you $90+ for the same term. Need to stretch that loan out to 21 days? A 21-day term cost you roughly $280 or $140 for the $1000 or $500 loan, respectively.

Payday loan site #2 merely states a cost of $25 to $30 per $100 borrowed, with no mention of the timespan.

What happens if you can’t pay in the agreed upon time? Get ready to pay a whole lot more …

Bottom line: If you’re thinking that a payday loan is your only alternative, you should look at the terms very carefully. Do your homework and check out every possibility before committing.