payday loan

noun

plural payday loans

: a short-term high-interest loan in a relatively small sum usually intended to be repaid from the borrower's next paycheck : a loan issued by a payday lender

Payday loans involve potential financial pitfalls, such as debt that grows uncontrollably if not repaid on time.

—Matt Ryan Webber

Word History

First Known Use

1937, in the meaning defined above