Avoiding Payday Loans

Thank you all very much for the tremendous response from my first credit tips article. I never expected it to get on digg and I hope a lot of you learned a few new things or will at least get rid of some bad credit habits.

Another common problem that I encounter on a daily basis has to do with payday loans. While these may appear to be a quick and easy way to get money for rent, bills, credit cards, etc., the first loan is simply the start of a cycle where you are continually further and further behind on your payments and in need of even more money. Before you know what has happened, you are left in a downward spiral of overwhelming debt.

In most instances, my clients only need a few hundred dollars to pay their bills, so they head over to a cash advance store and put up their future paycheck in return for a no credit check loan. However, things start to get a little sticky when you discover that this place is charging an exorbitant interest rate, sometimes as much as 25% for a two week advance. To put this into perspective, if you borrow a rather modest $200, you could end paying upwards of $50 for this “quick and painless” loan. And once you have paid off your bills and repaid the loan, you may see that you are still a little short on cash due to the unexpected interest payment, so you need to take out another loan. Well, there goes another $50 dollars, meaning you just paid $100 in interest for a one month loan of $400.

Although throwing away $100 a month will not affect the livelihood of most individuals, the people who are taking out these cash advance loans are usually making minimum wage and working hard to make ends meet. It may appear that these operations are taking advantage of the low-income earners plight, but the government has said payday loan stores are not predatory and fulfill a crucial role for some people. I wholeheartedly disagree with this considering that I have seen first hand how it can destroy a family’s life.

To avoid the steel trap of payday loans, there are a few alternatives that I regularly recommend to my clients. Instead of the 300% or so interest you may pay for a cash advance over the course of a year, try taking out an advance on your credit card, which probably charges under 20% yearly interest. While the interest rate is still extremely high, you can save more of your hard-earned money and put it towards better uses. Other options to consider include asking friends and family for a loan in writing (create a contract) or trying a local credit union, which may be able to help you out with a more reasonable interest rate.

If you are not able to come up with the money on your own, a few last resort methods should be attempted before ever stepping foot in a payday loan store. In some instances your employer will give you an advance paycheck, as long as this is a first time or extremely rare request. Also, you can even contact the companies to whom you owe money. In some instances, the company will allow you to pay a little late to ensure that you do not go deep into debt and can continue to make payments to them in the future.

When a payday loan seems like the only solution to your problem, take a step back to consider your situation and determine how you got into it. Do you need the loan because of bad credit, no credit, lots of debt? While each individual’s problems are different, it is always important to plan for the future and set aside money in advance so you can avoid this difficult and stressful situation. For tips and advice on how to track and budget your money, consider visiting a non-profit credit counselor such as myself. With their advice and your hard work, you can avoid payday loans and break out of the cash advance cycle.

Good luck!

About these ads

96 Comments »

  1. [...] Avoiding Payday Loans [CreditPro] [...]

  2. kingkong said

    It’s a shame that congress saw fit to allow this to continue.

    There is a niche for this sort of lending, but it shouldn’t be at those rates.

    What the US needs is a microcredit system like is being introduced in the 3rd world.

    The only problem is that those loans are being used to start small businesses, while in the US they are used to pay consumer debt.

  3. Payday loans are to be avoided, if at all possible. Although I suppose they can be useful if you are desperate.

  4. grace said

    well avoid payday loans till u r not in crisis, ucan get them any tiome — keep them as the last option

  5. kimberly said

    payday loans have ruined me and my partners lives, stay away from them! if anyone has any info on how to get out of this situation please email me.

  6. rich said

    There are a few tricks to try. Many payday places have discount coupons and even honor those form other places. If you use a 50% off one you can reduce the interest and maybe eventually get away from these places. If you can’t get out of this situation go to your local Catholic charities (or United Way) and they should have a credit counselor who will help you get back on your feet. Good luck!

  7. turtledove said

    i think that payday loans are a leagalized loan sharking, i was a victim also although i am working my way out of the 6 i was in {ohio} it sent me back with my other bills.out of the 6 i was in i have paid back 2 of them and am still working on them , only 1 of them is giving me a hard time so dont ever borrow from express payroll {ohio} or they will send your check through and take you to court. the state of ohio wants to do away with these games of skill well they should do way with payday loans. they say well we dont tell you to come in here or go two multipile ones thats not our fault, but in all reality the tempation is there the quick fix and like most prople you will go , well i had to make a stand i have to get out of them and i will i hope but i will not go back to them. stay out of them they will take you down.sorry about the spelling but i hope this helps.

  8. Paul said

    I’ve never gotten a payday loan before myself. They seem to be in the lower income areas. Basically each borrower should read the fine print before signing anything. Proper budgeting is the main key too.

  9. Payday loan places are slimier than snake pits. You either need a better paying job or a scaleback of your lifestyle, if you find that you frequent this type of place. If you are drowning in debt, you should consider a legitimate (BBB member) debt counseling / debt negotiation agency. They can get your debt negotiated down tremendously with your creditors, if you meet certain qualifications.

  10. Arthur Thomas said

    Hello everyone,

    I believe payday loans exist because most of us spend all of our monthly or biweekly income before next payday. If people learn how to budget-spend less than what they get or earn, then payday loans woundn’t exist in the first place. Payday loan companies are not gonna teach you how to budget your money, because they know loss you as a customer.

  11. Kevin said

    Payday loans offer very high interest rates and whenever I start to consider them I know that is an indicator of a deeper issue. An income issue that needs to be addressed. Payday loans are an expensive and costly band aid.

  12. National Hard Money Conference hosted April 30th call 858-736-7788 for info or view 3hardmoneylenders . com

  13. Tommi said

    We will give you 30 day payday loan online within 24 hours – up to $1000 will be wired to your bank account the next morning!ᅠThere are no credit checks, long loan application to fill out, or unnecessary paperwork. It’s fast, safe, and convenient.

  14. Stuck with too many payday loans? Try out the free Payday Loan Organizer demo.

  15. James said

    Payday loans are agreat tool since they resolve emergency problems whcih show up in between paychecks !

  16. Greg said

    Payday loans are a quick way to pay bills but having said that I know from personal experience how they can really take your money out of your account each payday through the use of the “fee” which DOES not apply to the principal. One of these charges $180.00 fee every payday. The interest rate on most of the ones I had are 870 percent which is pathetic to say the least. Many of these are scams having you buy other credit cards, clubs, etc.

  17. Annie said

    If you need to take out a payday loan because you can’t get credit elsewhere and you can’t afford your lifestyle you can’t afford to pay them back. It is so easy to get stuck in a cycle of borrowing and reborrowing and rolling over loans. You ending up paying back more than what you owe in interest and still owing the capital. I’d rather be hit with bank charges etc than that!

    See my site http://paydayloantrap.synthasite.com/ to see what a mess I got into. Don’t take out a payday loan it is almost never worth it!

  18. at one point in our life we will always have some bad credit because of some unpredictable factors “

  19. olejjka said


    .
    .
    [b] .[/b]

  20. richa123 said

    If you have a less than perfect credit history, then obtaining a loan from a mainstream lender can prove difficult especially in the current economic climate.

    Secured Personal Loans

  21. cellylut said

    .
    , ??
    ?
    !!
    http://www.cellylut.metastock.ru
    !!!

  22. mr.martins said

    Am Martins. A legit loan lender. Are you into debts? Do You have a bad credit? Are you financially down? I give out loans at low Interest rate of 3%.I gives out loan to Business, Auto and personal loan To Men and women who are into Business transaction, I give out long Term loan for ten to fifteen years your interest in this you can a Well tell me the amount you need so that I can send you the terms and Condition and monthly repayment that if you are realigned interested in Getting a loan from me, hope to here from you soon.via: jmartinsloanfirm@googlemail.com

    LOAN APPLICATION FORM

    Name:
    Address:
    Nationality:
    Country:
    Zip/Code:
    Date of Birth:
    Gender:
    Marital Status:
    Amount Required :($) US DOLLARS
    Purpose for Loan:
    Phone No:
    Loan Term/Duration:
    Net monthly income: $

    Best Regards
    Mr. Martins

  23. Klevrgjc said

    true lovers knot,

  24. zulfikar said

    hey it is very legit and fast approval of loan on http://www.a2zpayday.blogspot.com it works

  25. If you can’t get out of this situation go to your local Catholic charities (or United Way) and they should have a credit counselor who will help you

  26. If you would like to increase your experience simply keep visiting this web site and be updated with the hottest gossip posted
    here.

  27. buy car bad credit said

    Wonderful beat ! I would like to apprentice while you amend your
    site, how could i subscribe for a blog site?

    The account helped me a acceptable deal. I had been a little bit acquainted of this
    your broadcast provided bright clear idea

  28. fantastic points altogether, you simply received
    a logo new reader. What would you recommend in regards
    to your submit that you made a few days ago? Any positive?

  29. Hey there! I simply want to give you a big thumbs up
    for the great information you’ve got here on this post. I am returning to your site for more soon.

  30. It’s appropriate time to make some plans for the future and it is time to be happy. I have read this post and if I could I desire to suggest you some interesting things or tips. Maybe you can write next articles referring to this article. I want to read more things about it!

  31. Greg said

    Payday loans on the internet are the worst way to borrow money. Some of these places charge up to 1,000 percent interest or more. There are ways to fight back. It is ILLEGAL for any payday loan company to withdraw money from your checking account without permission. It is also illegal for any payday loan company to threaten you with arrest, to harass you by telephone, in person or at work. Write a complaint to the FTC (Federal Trade Commission, Washington, D.C.) on their website http://www.ftc.gov. Write to the Attorney General of the state that the payday loan company has its base at and file a formal complaint. Write to the BBB (Better Business Bureau). Contact your US Congressman or US Senator to sponsor a bill to stop the predatory high interest charges on these loans. You can stop them.

  32. runirxfduucr

  33. xqxdjmthikhg

  34. afkgyuzvmayo

  35. aclvwbdjyoli

  36. hello there and thank you for your info – I’ve definitely picked up

    something new from right here. I did however expertise several technical issues using this site,
    as I experienced to reload the website lots of times previous

    to I could get it to load properly. I had been wondering if your hosting is OK?
    Not that

    I am complaining, but slow loading instances times will sometimes affect your

    placement in google and could damage your high-quality score if ads and

    marketing with Adwords. Anyway I’m adding this RSS to my email and could look out for a lot more of
    your respective fascinating content. Make sure
    you update

    this again soon..

  37. tknosvywtcyt

  38. Please let me know if you’re looking for a writer for your web-site. You have some really great articles and I think I would be a good asset. If you ever want to take some of the load off, I’d absolutely love
    to write some articles for your blog in exchange for a
    link back to mine. Please send me an email if interested.
    Cheers!

  39. Milagros said

    Actually no matter if someone doesn’t know then its up to other viewers that they will assist, so here it occurs.

  40. After going over a handful of the blog articles on your site, I honestly
    appreciate your way of blogging. I bookmarked
    it to my bookmark website list and will be checking back in the near future.
    Please visit my website too and let me know how you feel.

  41. So, just check out my signature box under my username for some information.
    After the process finished, you should also check if the surgeon is
    able to record all activity through the spy weight loss will begin recording the
    flight. By having this instruction at this weight loss school,
    the future convergence of the social media version of the Gitzo.

    For an untrained person trying to do.

  42. Its such as you learn my thoughts! You appear to understand a lot about this, like you wrote the e book in it or something.
    I feel that you could do with a few p.c. to force the message home a little bit, however other than that, this is wonderful
    blog. An excellent read. I will certainly be back.

  43. Miles said

    Undeniably believe that which you said. Your favourite justification seemed
    to be on the web the simplest thing to be aware of.
    I say to you, I certainly get annoyed while people think about worries that they
    just do not know about. You managed to hit the nail upon the top and
    also defined out the whole thing without having side effect
    , people can take a signal. Will probably be back to get more.
    Thanks

  44. Attractive section of content. I just stumbled upon your site
    and in accession capital to assert that I acquire actually enjoyed account
    your blog posts. Anyway I’ll be subscribing to your augment and even I achievement you access consistently quickly.

  45. Would you be concerned with exchanging

    hyperlinks?

  46. The other day, while I was at work, my cousin stole my iPad and tested to see if
    it can survive a thirty foot drop, just so she can
    be a youtube sensation. My iPad is now destroyed and she has 83 views.

    I know this is completely off topic but I had to share it with someone!

    • Greg said

      Well without your permission if the IPAD was destroyed then she owes you a new IPAD.

  47. Rosemarie said

    Excellent, what a web site it is! This web site provides valuable information
    to us, keep it up.

  48. Chang said

    I am sure this article has touched all the people, its very crucial article on building
    up new blog.

  49. There is certainly a great deal to know about this subject.
    I love all of the points you have made.

  50. Thanks a bunch for sharing this with all people you really
    recognise what you are speaking about! Bookmarked. Kindly

    also seek advice from my website =). We

    will have a hyperlink trade contract between us!

  51. Hello, I read your blogs daily. Your humoristic style is witty,
    keep it up!

  52. Lavonda said

    Pretty component to content. I just stumbled upon your web-site and
    in accession capital to claim that I get in fact enjoyed account your
    blog posts. Any way I will be subscribing for your augment or even I fulfillment you get entry to constantly rapidly.

  53. Its not my first time to pay a quick visit this web site,
    i am visiting this web page dailly and get pleasant information from here everyday.

  54. Julia said

    Hey there, You have done an incredible job. I’ll

    certainly digg it and personally recommend to my friends.
    I am confident they will be benefited from this web site.

  55. Claude said

    I absolutely love your blog and find a lot of your post’s to be what precisely I’m looking for.
    can you offer guest writers to write content
    for you? I wouldn’t mind publishing a post or elaborating on most of the subjects you write related to here. Again, awesome website!

  56. Sweet blog! I found it while surfing around on Yahoo
    News. Do you have any suggestions on how to get listed in Yahoo News?
    I’ve been trying for a while but I never seem to get there! Appreciate it

  57. Onita said

    Heya! I just wanted to ask if you ever have any problems with hackers?

    My last blog (wordpress) was hacked and I ended up losing months of hard work due to no backup.

    Do you have any methods to protect against hackers?

  58. He was supposed to have made an appearance in ‘The Curse of the Black Pearl. These things should all be considered in downloading movies. When ripe, it has abolished armed forces and has also avoided despotic dictatorships, military coups, terrorism and any other large activities.

  59. Temeka said

    Hi there just wanted to give you a quick heads up.

    The text in your content seem to be running off the
    screen in Ie. I’m not sure if this is a formatting issue or something to do with browser compatibility but I thought I’d post to let you know.
    The design and style look great though! Hope you get the problem
    solved soon. Many thanks

  60. Whether you are a professional or amateur fisher, there are still a lot of rain, can be found in downtown holidays,
    just one block away from ADO bus station, at 17 Margarita Street.
    All it takes is checking regularly and at odd hours in other words, just
    under every ten years, a big part in making holidays, Mexico.
    Cozumel is a 45 minute snorkel it is off to Isla Mujeres for the Caribbean; you
    just need to know the ins and outs of organizing a wedding in a foreign country.

  61. I’m trying to develop a similar website to this myself, there’s clearly a lot of effort that goes into
    it. Really vibrant community here, not easy to build.

  62. I’m trying to create a similar site to this myself, there’s a huge amount of work that goes into it.
    Really intelligent community here, not easy to achieve.

  63. loans said

    Once bad credit loans scamss are consolidated, the first step, the bank has the right
    to inspect my house before a bad credit loans scams modification?

  64. What i do not understood is in reality how you’re now not actually much more smartly-liked than you might be right now. You’re very
    intelligent. You understand thus considerably in terms of this matter, produced me personally consider it from numerous varied angles.
    Its like women and men don’t seem to be fascinated unless it’s one thing to accomplish with Girl gaga!
    Your individual stuffs great. Always deal with
    it up!

  65. With havin so much content and articles do you ever run into any
    issues of plagorism or copyright infringement? My site has a lot of completely unique content I’ve either written myself or outsourced but it seems a lot of it is popping it up all over the internet without my agreement. Do you know any methods to help stop content from being stolen? I’d genuinely appreciate
    it.

  66. Nannette said

    Raw organic Argan oil helps replenish your skin and makes you look younger and rejuvenated almost instantly.
    For centuries, Berber female of this neighborhood have produced argan oil which was used for their consumption
    and conventional Moroccan medicine. Prostaglandin is a natural
    anti-inflammatory and acts as a controlling factor
    in overall cell growth and development.

  67. Hi there would you mind sharing which blog platform you’re using? I’m planning to start
    my own blog in the near future but I’m having a tough time choosing between BlogEngine/Wordpress/B2evolution and Drupal. The reason I ask is because your layout seems different then most blogs and I’m looking for something completely unique.
    P.S Sorry for getting off-topic but I had to ask!

  68. best heloc said

    Amazing blog! Do you have any hints for aspiring writers?
    I’m planning to start my own blog soon but I’m a little lost on everything.
    Would you propose starting with a free platform like WordPress or go for a paid option?

    There are so many choices out there that I’m completely overwhelmed .. Any suggestions? Thank you!

  69. Heya i’m for the primary time here. I found this board and I find It really useful & it helped me out a lot. I am hoping to provide something back and aid others like you aided me.

  70. Thank you for sharing your thoughts. I truly appreciate your efforts and
    I will be waiting for your further write ups thank you once again.

  71. Celia said

    Everyones a sucker for an octopus.

  72. It is a morning when people truly feel happy also it leads a nice happy life
    almost all. Lots of loan companies presume people are popular and
    deserve one chance for the life.

  73. Any kind of of us, the necessity to access cash almost
    instantly can pop ” up ” without warning.
    Although support of Payday Loans for terrible debt score, you generally supported with fund up to
    fifteen hundred pounds for 30 days.

  74. However , what about when these long keyword phrase loans are absolutely not within your completely understand?
    Consuming food healthy food as well exercise regularly, are typical the only fashions
    a person possibly can continue staying substantial.

  75. Warren has pushed for first time regulations on edge and hedge funds, higher taxes for that wealthy, and the
    most up-tp-date sales tax concerned with financial transactions.
    Payday Loans are your prized finest bet to such situations.

  76. My partner and I stumbled over here different web address and thought
    I should check things out. I like what I see so
    i am just following you. Look forward to checking out
    your web page yet again.

  77. Latanya said

    Too if you come with question about student loan on Saturday or perhaps a Sunday have a lot
    of lenders for that you? These can be entirely $100
    to $500, and with every one loan cleared, my credit rating is without a doubt rebuilt.

  78. turboforce said

    Link exchange is nothing else except it is just placing the other
    person’s website link on your page at suitable place and other person will also do similar for you.

  79. Feel free over sharing your explains with lenders as they simply dont use that for any alternative purpose and this
    advice way, it is probably the most suitable aspect for. All the charges and fees are still you owe
    regardless.

  80. Fantastic items from you, man. I’ve understand your stuff prior to and you are simply extremely excellent.

    I actually like what you have acquired here, really like
    what you’re stating and the way in which you assert it.
    You’re making it entertaining and you still take care of to keep it wise.
    I can’t wait to learn much more from you.

    That is actually a wonderful website.

  81. Wow! This blog looks exactly like my old one!
    It’s on a totally different subject but it has pretty much the same
    layout and design. Outstanding choice of colors!

  82. Whoa! This blog looks exactly like my old one!
    It’s on a entirely different subject but it has pretty much the same page layout
    and design. Excellent choice of colors!

  83. If some one desires to be updated with newest technologies then he must be pay a
    visit this web site and be up to date every day.

  84. Great blog here! Also your site loads up fast! What host are you using?
    Can I get your affiliate link to your host? I wish my site
    loaded up as fast as yours lol

  85. Hello there, just became alert to your blog through Google, and found that it is truly informative.
    I’m going to watch out for brussels. I will be grateful
    if you continue this in future. Many people will be benefited from your writing.
    Cheers!

  86. Great weblog here! Also your web site a lot up fast!
    What host are you using? Can I get your affiliate hyperlink in your host?
    I desire my web site loaded up as quickly as yours lol

  87. all the time i used to read smaller articles that also
    clear their motive, and that is also happening with this paragraph which I am reading at this time.

  88. Soila said

    I think this is among the most important info for me. And i am glad reading your article.
    But want to remark on some general things, The website style is perfect,
    the articles is really excellent : D. Good job, cheers

  89. Fabulous, what a webpage it is! This weblog provides
    helpful data to us, keep it up.

  90. Hello would you mind letting me know which
    web host you’re working with? I’ve loaded your blog in 3 different internet browsers
    and I must say this blog loads a lot quicker then most.
    Can you recommend a good internet hosting provider at
    a honest price? Thanks a lot, I appreciate it!

  91. Link exchange is nothing else except it is only placing the other person’s weblog link on your page at suitable place and other
    person will also do same in support of you.

  92. väikelaen said

    Greetings! This is my 1st comment here so I just wanted to give a quick shout out and tell you I genuinely enjoy
    reading through your blog posts. Can you suggest any other blogs/websites/forums that deal with the same topics?
    Thank you!

  93. Aleisha said

    I read this piece of writing completely regarding the difference of
    hottest and preceding technologies, it’s amazing article.

  94. Clark said

    Hi, i believe that i saw you visited my web site thus i got here to return the want?.I’m
    trying to to find things to enhance my web site!I guess its ok to make use of
    a few of your ideas!!

  95. This post wilol assist the internet viewers for buuilding up
    new website or even a blog rom start to end.

RSS feed for comments on this post · TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

%d bloggers like this: