The business model for any payday loan operation can be summed up in one phrase: "Desperate times call for desperate measures." Consumers desperate for cash have alternatives to such approaches.

A payday loan is built on a simple premise: People who take them out are so strapped for cash that they're willing to overlook the loan's exorbitant fees. Sadly, this leads consumers into a debt spiral from which they sometimes never escape.

Here's how the typical payday loan works: A borrower will go to a payday loan company and post-date a check for the amount they need, plus a fee. The lender will then pay the borrower the funds, minus the fee. At the end of a designated period of time, the borrower must either present cash as payment for the loan, or allow the lender to cash the check. A typical fee on a $100 loan would be $15. Over a two-week period, that equals a sky-high 391 percent annual percentage rate!

Finding help

You may be strapped for cash, but there are alternatives to those kinds of rates without paying a call to your neighborhood loan shark. Consider the following five options before you enter into any agreement that you might regret:

1. Shop around: Look everywhere you can for another loan. That includes a credit union, a bank, or even friends.

2. Check out credit cards: There are a number of credit card companies that are willing to extend credit to people who can't get a loan from a bank. While these tend to have high APRs, you may discover that the rates are lower than a payday loan's.

3. Consult a credit counseling service: Credit counseling services will work with you and your creditors to develop a debt repayment plan. Spend some time to investigate if there are any local government programs or financial institutions that provide a similar service.

4. Set up your own financial plan. Try and squeak by without a payday loan, and then create your own budget. When you do, be sure to designate savings for a rainy day fund. It will give you a place to go if a financial storm hits and you need emergency cash.

5. Borrow only what you need: If a payday loan is inevitable, make sure that you borrow the exact dollar amount you need, and not a penny more. Don't extend the loan when the time comes to pay it off. A payday loan company makes its most money off repeat customers.

Payday loans have become a permanent fixture in our financial landscape. Their all-too-convenient service fills a frantic need in our society. Unfortunately, they seem to be adding to America's debt problem on a daily basis. Consumers can do their part to dry up the demand for payday loans by following the five tips listed above. These desperate times require cool and collected measures. Otherwise, the end result will be more payday loans and more debt-ridden consumers.