According to CareerBuilder.com, 61% of American households lived paycheck to paycheck in 2009. This number is huge, especially considering that only 49 % lived this way in 2008, and only 41% in 2007. Whether this was due to the loss of one or both household incomes or simply a reduction in household income, the statistic is staggering. With families unable to save enough for any unexpected expenses that might arise, they find that more often than not, there are more months than money. So what happens when the rent or mortgage payment is due, groceries need to be purchased, and then the car breaks down? For some, a small personal loan from a local bank is enough to get back on track. However, for many, this is not an option, and the only place they have to turn is payday loans, which may seem like a good idea initially, but in the long run, it can sink you deeper than 'previously. Payday loan? In its simplest form, a payday loan is simply a small, short-term loan intended to cover the borrower's expenses until their next payday. They go by many different names: payday advance, salary advance, and cash advances are the most popular when it comes to payday loans, but the basic concept is the same. The borrower goes to the payday loan store, gets the loan – $500 is the average loan – by providing proof of income, their Social Security number (SSN), recent bank statements and other personal information, and writes a post-dated check payable to the lender. lender for the loan amount plus all loan fees. Sounds pretty good, right? Come in, apply, leave with money the same day; what's better? A lot. To begin, on the loan due date – usually within two weeks of loan approval – borrowing...... middle of paper ...... one loan at a time, and Don't use a payday loan for everyday expenses, to pay off credit card debt, to pay off another payday loan, or to try to solve a long-term financial challenge. Payday loans are meant to be used in an emergency, not to fund your shoe fetish or video game playing habit. the payday loan rollover cycle. Know the laws regarding payday loans in your state. Make sure you know the terms and repayment schedules of the loan and only borrow what you know you can afford to repay. Use them only as a last resort after you have exhausted all other possible options. But better yet: avoid payday loans altogether, try to live as best you can within your means, and save, save, save.!