How do they work?

The process is quite simple and short. You have to contact a loan provider who could be available either online or in a brick-and-mortar outlet. You apply by filling up a short form. The lender checks whether you have a steady income to be able to pay back the debt with high interest. If you get an approval, you have to write a personal check for the amount borrowed plus the finance charge and receive cash. The lender holds the check until your next payday, when the money is due. You redeem the check by paying the money or the lender would en-cash the check as a payment. In case of applying online you would sign over electronic access to you bank accounts to receive and repay payday loans. Some lenders also offer longer-term payday installment loans. The multiple payments are typically due on each pay date.