Typically, a payday loan is for about $100 to $500. The fee is generally around 20%, but you have to pay it back in about two weeks. So, for example, if you borrow $500, you will write the payday loan place a check for $600 (that $500 plus the 20% fee). They will hold your check until the end of the two weeks. However, if you don't have the money to pay it back when the two weeks are up, you can extend the loan for another two weeks by paying the 20% fee. So you pay them $100 to extend your due date another two weeks. But again, if you don't have the $600 at the end of the next two weeks, you can again extend it for another two weeks by paying the 20% fee again. So obviously if you keep extending your loan, you'll end up paying hundreds of dollars in fees - more than what your loan actually was. So the 20% interest fee can actually turn into 50%, or 100% or more.

So, never ever get a payday loan.

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