Payday Loans Are Named After the Day You Repay
Payday is when wages arrive. The loan named after it is designed to be repaid the moment the money lands.
Payday is the day wages are paid. The *payday loan* takes its name from the repayment schedule rather than the borrowing: a short-term high-interest loan intended to be cleared when the next wages arrive. British regulators capped the costs in 2015 after finding that charges could exceed the original sum many times over.
- The day wages are paid. *Friday is payday.*
- Payday loan — a short-term high-cost loan. *A payday loan.*
- Pay — to give money for. *Pay the bill.*
Word forms
| Form | Word | Example |
|---|---|---|
| Noun | payday | Next payday. |
| Plural | paydays | Monthly paydays. |
| Verb | pay | Pay in full. |
| Noun | payment | A late payment. |
| Related | payroll | On the payroll. |
How it is used in a sentence
- Payday is the last Friday of the month.Employment.
- Payday loans were capped in 2015.UK regulation.
- Pay comes from a word meaning to pacify.Latin *pacare*.
Words from *pax*, peace
- Pay — originally to pacify a creditor
- Peace — the state of quiet
- Pacify — to make peaceful
- Appease — to bring to peace
- Pact — an agreement, from a related root meaning to fasten
A compound of *pay* and *day*. *Pay* comes from Latin *pacare*, to pacify, from *pax*, peace — you paid a creditor to satisfy them.
Are pay and peace related?
Yes. To pay originally meant to pacify a creditor, from the Latin word for peace.
What is a payday loan?
A short-term loan at very high interest, intended to be repaid from the next wage payment. UK costs have been capped since 2015.