Definition of payday loan in English:

payday loan


  • A relatively small amount of money lent at a high rate of interest on the agreement that it will be repaid when the borrower receives their next paycheck.

    ‘consumer advocates and lawmakers are urging low-income consumers to avoid payday loans’
    • ‘Other than trimming his waistline, Bettis has as much use for training camp as he does a payday loan at the corner Currency Exchange.’
    • ‘Frequently called deferred presentment, payday loans are very expensive, short-term (7 to 14 days), small-dollar loans that are primarily marketed to society's poorest citizens.’
    • ‘The annual percentage rates may well be sky-high, but payday loans are often less expensive than the alternatives: bounced check fees or illegal loan sharks.’
    • ‘"Borrowing money at triple-digit interest rates is never the right solution for people in debt," decrees Consumers Union in a fact sheet on payday loans.’
    • ‘Borrow from friends or relatives, or take high-interest "payday loans," to tide you over until you get paid?’
    • ‘A typical payday loan works like this: the borrower writes a post-dated check to the payday lending company.’
    • ‘In the meantime, consumer advocates and lawmakers are urging low-income consumers to avoid payday loans.’
    • ‘Payday loans are somewhat similar to advance-fee loans, and are among the most expensive ways of borrowing money.’
    • ‘On a typical payday loan, a person might write a personal check for $115 to borrow $100 until payday.’
    • ‘They use tax preparation as a pretext to sell other costly products and services, such as high-interest refund anticipation loans, payday loans and furniture rentals.’
    • ‘"It's worse than a payday loan."’
    • ‘Banks like these issue payday loans that bind consumers to unreasonable terms and require them to waive their rights to legal recourse.’
    • ‘On Oprah, one family owed $92,000 in debt, many in legally usurious "payday loans".’
    • ‘On that side of town, the bank becomes payday loan, the bank becomes currency exchange, the bank becomes credit-card manipulation.’
    • ‘The growth of payday loans belies the adage of "living from paycheck to paycheck."’
    • ‘The ad neglects to state that payday loans are one of the most expensive ways of borrowing money, or that such loans are actually illegal in some states.’
    • ‘Rather than using advance-fee or payday loans, soldiers should consider applying for a small loan at the local credit union or a small-loan company.’
    • ‘90 percent of all payday loans go to borrowers with five or more loans in a single year.’
    • ‘Drive along routes leading to military installations and you'll see numerous signs advertising quick cash, payday loans and more.’
    • ‘Even if transaction fees were removed from the picture, one would still expect large APRs for payday loans because of the relative credit risk of payday borrowers.’
    extortionate moneylending, payday lending
    View synonyms