The financial industry is an ever evolving one and new products are constantly being developed to meet the changing needs of the economic environment. One such example is payday loans. An extremely short term loan granted to a borrower, to meet unforeseen expenses, and repayable on payday. Usually extended for a sum ranging anywhere between $100 and $1500, the duration of this loan is typically 2 weeks only. Administered by Payday Lending Stores, the borrower has to prove his financial credibility at the time of applying for the loan. Pay stubs for a couple of preceding months and/or bank statements would suffice. Maturity date coincides with payday. If the borrower is unable to meet his financial obligations on time, additional charges are slapped on which only further aggravate the situation. Hence, it would certainly be advisable to borrow money only if need be, and to ensure that when the paycheck does come in, it is promptly earmarked to clearing the loan.