Payday Loan



A payday loan is type of rollover loan. Payday loans normally have a one-month loan term, at the end of which any remaining debt is automatically rolled over to a new loan.

Debt is automatically carried over to new loans from month to month until it is repaid in full. Typically, the interest rate charged increases with each new loan issued.

Editor Daniel Dreier
Daniel Dreier is editor and personal finance expert at moneyland.ch.