 TITLE: 10 Alternatives to Payday Loans CONTENT: Why Should I Avoid Payday Loans?\n--------------------------------\nTaking out a payday loan is one of the most expensive ways to borrow money. A two-week payday loan with a fee of $15 per $100 borrowed would result in fees equivalent to an annual percentage rate (APR) of nearly 400%, according to the Consumer Financial Protection Bureau. By comparison, credit cards have an average APR of around 16%.\nA common amount for a payday loan is $500, although it may be more or less. Generally, a borrower repays the entire loan on their next payday or when they receive another type of payment, such as a Social Security check. The timeframe for paying off a payday loan usually ranges from two to four weeks. Most payday loans don't require a credit check or proof that you can repay the loan.\nIf you fail to pay off the loan within the time period spelled out in your lending agreement, you might be able to extend the loan through what's known as a renewal or rollover. However, you may be hit with a renewal or rollover fee of $45, for example, on top of the principal and interest already owed. This cycle could continue every time you renew or roll over a payday loan, perhaps resulting in several hundred dollars in extra fees.\nSome states ban payday loans, and some payday lenders don't do business in states where interest rates and fees are tightly regulated. The maximum size of payday loans is regulated in other states. END