A payday loan is a short-term loan that is due to be paid back by the borrower's next payday, generally two weeks. The interest rates (or fees) or payday loans can reach staggering levels - 400 percent or higher. Typically, a person will wind up paying $10 for every $100 borrowed. Payday loans are made by some banks, loan stores, check cashers, and pawn shops. Payday-loan arrangements can also be made through various toll-free number and internet sites. The business through which a loan is arranged often requires your savings and checking account information, and that transactions be made by direct deposit- the money you lend and the money you automatically pay. Others accept postdated checks; if the check bounces, your fees continue to pile up. The lure of a payday loan is that no questions are asked and no credit checks are required. When a personal loan at a bank is difficult to qualify for, a payday loan seems like a harmless option- until the borrower falls behind on payme...