Payday loans are very high-cost, short-term loans that ensnare borrowers in a debt trap. As public awareness of the dangers of payday loans has grown, a number of institutions have begun offering alternative products that promise to be more beneficial to the borrower. But payday loan alternatives are not all created equal. Some are considerably more affordable and safer than payday loans.
Others differ little from the loans offered by traditional payday lenders. Several myths surround payday loan alternatives: