 But that doesn't mean it's not flexible. Just like a student loan, a payday loan can be refilled at any time.

Pros and Cons Pros of a payday lender

A low cost and low-risk product.

Your monthly payment is usually cheaper than most of the other options listed in this article.

If a payday loan isn't right for you, consider checking out different types of debt consolidation.

Cons of a payday loans

Most lenders require customers to have some financial hardship prior to applying. This may be especially true with credit card debt, which requires a payment-plan agreement. If you're struggling to pay your rent or your mortgage payments, a payday loan may not be the most financially sound choice.

Many other options are available for you. But many lenders use the same terms and conditions as payday loans to ensure customer compliance. So it's important to read a company's conditions carefully.

A large upfront fee. If you don't meet the eligibility criteria set out in the payday loan contract, your lender may ask you to pay a premium in cash. Some of these companies also charge early registration fees.

What if I'm not in need of a loan at all?

You may be better off checking out one of the following debt consolidation options.

You may be a good candidate for a loan with a credit card because many lenders also offer cash advances, which are typically short-term loans or loans with interest rate and balance requirements. Most credit cards also allow you to pay off a principal and interest debt in one payment.

If you are facing a credit card balance after a lengthy divorce or other life changes, you may need to pay off a credit card debt first. If you need to pay off a card debt, the debt consolidation option may be just what you need. It provides easy repayment options to help reduce the amount of credit line you borrow.

If you're in a cash-only situation, a payday loan may be a good option. These loans are usually short-term, and the maximum payment is often $30  $120.

What are the benefits of a payday loan?

The benefits of a payday loan include:

You pay the balance off right away without having to deal with the stress of a credit card debt, which tends to weigh heavy on credit scores.

A lower risk level.

A repayment plan or grace period if you aren't in need of monthly payments.