Definition, Meaning & Synonyms

payday-lender

Noun

/ˈpeɪ.deɪ ˈlɛn.dər/

Definition

A payday lender is a financial institution or individual that provides short-term loans to borrowers, typically requiring repayment by the borrower’s next payday.

Examples

Many people turn to a payday lender when facing unexpected expenses.
Using a payday lender can lead to a cycle of debt due to high interest rates.

Meaning

Payday lenders focus on borrowers who need quick cash before their next paycheck. These loans often come with high fees and interest rates, making them a controversial form of lending.