Payday loans are available at your local cash advance store—most major cities in North America, for example, are littered with many different places that lend short-term loans for the average consumer. You can also apply for a payday loan over the phone if you prefer. In addition, if you have internet access, applying for a payday loan online is becoming more popular as it is usually both a very convenient as well as secure method of application.

How does a payday loan work? Basically, when you apply, you have to provide information that confirms you have a steady job—how long you’ve had the job and how much money you make per week or per month will sometimes affect how much you can borrow or even whether you will be approved. For example, at www.paycheck-cash.com, you need to have worked at your current job for at least 90 days and you need to be making at least $1000 US a month after taxes. Further, you need to confirm you have a valid checking account in whatever country you are applying for a loan.

Once you are approved for the amount that you have requested, you write a check that covers the amount borrowed plus the fee (for example, a $345 check for borrowing $300) and the $300 is automatically deposited into your account, usually within 24 hours. The check is held by the loan lender until your next pay day. At this point you have the option of allowing them to deposit the check or “rolling over” (extending) your loan, which will incur another fee, and can get quite expensive.

There is one major drawback of payday loans, and that is the high interest rates. As shown in the example above, a typical loan of $300 can cost around $45—sometimes more. If you are responsible and pay it off on time, though, and don’t roll over the loan, this seemingly high upfront cost can be worth it if it’s helping you through a financial bind—and can more than pay for itself if it helps you avoid major fees for bounced checks.