A payday loan is rather small, short-term loan intended to cover borrower's expenses until next payday. It is sometimes reffered to as cash advance. Legislation regarding such loans varies between different countries with some of them having banned payday loans or imposed strict usuary limits. When the borrower take a loan, he or she gets a payment due in full at the borrower's next paycheck - usually a less than month term. Of course, financial institution or bank charges the borrower for the money he borrowed. The percentage rate is typically higher than the normal loans' rates and varies between 15 percent and 30 percent for the two-week period. The borrower has to write a check to the lender (full amount of the loan plus fees for the bank or financial institution), which can be redeemed if the borrower doesn't rapay the loan in person on the maturity date. If borrower's account can't cover the loan's amount, he or she may face - apart from the regular fees - a bounced check fee from the bank. As a result of failure to pay, sometimes the lender also increases the interest rate of the loan. Payday loan is very popular nowadays in Great Britain and United States. Although it can help us overcome temporary financial difficulties, it is also possible that it might cause more problems than we expected - especially if we fail to pay the money back to the lender. So, be careful when you take such loan as it's sometimes risky.