Payday loans are new to Australia, but in the US they have been around for years. A payday loan (also called a paycheck advance or payday advance) is a small, short term personal loan intended to cover a borrower's expenses until their next payday.

Typical loans are between $100 and $600 and are due in two weeks, with interest rates of up to 400% APR.

On a two-week loan, fees average $15 for each $100 lent. The loans are also sometimes referred to as cash advances, though that term can also refer to cash provided against a prearranged line of credit such as a credit card.

Legislation regarding payday loans varies widely between different countries.

Here is a real life example of how a user may use a Payday Loan.

A borrower seeking a payday loan may write a post-dated personal check for $460 to borrow $400 for up to 14 days. The payday lender then agrees to hold the check until the borrower's next payday. At that time, the borrower has the option to redeem the check by paying $460 in cash, or renew the loan by paying off the $460 and then immediately taking an additional loan of $400, in effect extending the loan for another two weeks.

There is of course many other situations were a Payday Loan may be used to secure some quick cash.

There are many more Payday Loan options here.

Please use this Payday Loan calculator to calculate how much a new Payday loan will cost you in the long run.

Payday Loan Calculator