Imagine you are stuck in an emergency situation where you need to pay an amount and you have no source of money like a credit or debit card on you. It's a nightmare situation, right! To compound your problem, imagine that you are not even in a position to call a friend to lend you money! Maybe, along with your credit/debit cards, you also forgot your mobile phone, or you got stranded at a place where you cannot make a call.

If you think this is an impossible situation, think again. It can happen. It has happened to a lot of people. If it happens wit you, don't panic. There's an easy way out: take a short-term loan! Yes, you can take a short-term loan called a payday loan and make your payment.

Payday loans are short-term loans. They are also known as Cash Advance or Check Advance Loans and are given against the borrower's next salary. They are instant, as they don't take much time to lend. The repayment terms can be between one to four weeks. Also, you should remember that it would be a small amount.

When you take this loan you need to return it with interest. You can either write a check payable or electronically withdraw from your checking account on the due date. You won't have to do heavy paper work to obtain it. All that the lender would want is your personal information like your name, address, bank account details etc. Once this is provided, you will have the money in hand.

Anybody can have such a loan and it is good for people with bad credit as they usually have urgent cash requirement, which is often turned down by banks. However, there is a disadvantage to this type as they are obtained at a higher interest rate.

There are times when such loans put a person in a debt, as they are unable to repay because of high interest and the borrower keeps rolling the amount to the next month's salary. Therefore, before you opt for it you should also remember that you have to pay this back along with the interest next month. Ideally, payday is best for people who are capable of paying back the amount, but are unable to make a payment because they don't have a source of cash ready with them in an emergency situation.

Well, there are other options that you can use to avoid payday. You can make a good budget and find out your monthly expenditures. Also save some money separately for emergency needs so you don't have to borrow money. It is also good to educate yourself about financial matters. If any day you decide to have payday, see to it that you borrow an amount, which you can repay easily.

It is always better to save yourself from such situations. So take care that you don't end up spending more than you can, or else you end up in a debt from which you will find it difficult to come out.