www.xnetnow.com

If you've ever found yourself short of cash and waiting on your next paycheque, you may have been tempted by one of the many companies offering payday loans. But are they worth the risk?

A payday loan is a loan taken out to cover expenses until your next payday, hence the name. The companies offering them often tout their service as being quick and easy, creating the image of an ideal way to get an advance on your wages, while carefully drawing attention away from the potential pitfalls and risks involved in such a transaction.

A payday loan allows you to borrow a certain sum and then pay it back, with a specific fee added on, when you get paid. The fee takes the form of interest, and as such the amount increases the more money you borrow. Of course, the other major disadvantage is that it adds up over time, too.

The payday loan companies like to insist that this is not a problem - after all, you're only borrowing the money for a week or so, until you get paid. But for a good number of unfortunate borrowers, the situation unfolds in a different and far less pleasant way.