1. Money

Payday loans have earned a terrible reputation for getting consumers deep into a debt trap that's nearly impossible to get out of. You'd think a payday loan is easy to pay off. You just have the loan taken out of your next paycheck, right? Wrong.

When your cash is stretched and you're barely making ends meet, having money taken out of your check is the last thing you need. So, when the loan's due date comes around, you pay another fee and extend the loan. Then you do it again. Next, you take out another payday loan to repay the previous payday loan. It becomes a vicious cycle - one that you don't want to get caught in.

There are ways to solve your short-term money issue, without turning them into a long-term problem. See 15 Payday Loan Alternatives to find out how you can get out of a sticky situation and avoid getting into an even stickier one.

Comments
July 30, 2008 at 11:38 pm
(1) Livia Magnon says:

You’re absolutely correct about the dangers of payday loans. People who can’t
live without this kind of financial "help" often end up as our clients. We, at
Debt Mediators then try to put their
finances in order, starting with debt consolidation, using debt agreements. But,
many of them will only have the last resort left opened to them: bankruptcy.
That’s why it is so important to try to spend less, rather than borrow more, to
sustain one’s lifestyle.

March 5, 2009 at 12:02 pm
(2) bankruptcy process says:

Agreeing with the comments above, payday loans don’t have to be the only way to get out of debt. And there are a number of key debt solutions, such as a financial management plan, which allow you to avoid the bankruptcy process as well as getting out of a financial crunch.

September 15, 2009 at 3:52 am
(3) credit cruncher says:

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September 17, 2009 at 3:14 pm
(4) Credit Repair With Karli says:

I agree with all. This is a very important topic for consumers to see.

October 21, 2010 at 4:43 pm
(5) Adrienne says:

One of the options listed was to do a side job. I have tried and tried to get a part time job. With the economy the way it is, it’s hard to get any job. I’m not trying to sound rude, but that’s the way it is. I would love to do something on the side, but I guess I’m over qualified because I have a Master’s Degree.

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