I was not sure how payday loans worked but I know that a few of my family members are going to them. What I discovered when I searched for a website to find information on them? Well, just let me say that it is heartbreaking . For every $100 you borrow you have to pay them back $25 and if you for whatever reason do not pay them back on your next payday they can and will charge $40 plus You can also be charged up to 60% interest (annual interest rate) if you pay late. How can this even be Legal????? I feel sick. This is a horrible vicious cycle to get trapped into.