Payday Loans: Why They Aren't the Fixes You Hope for
- What is a payday loan?
- Why you may need a payday loan
- Why you should avoid a payday loan
- What to do if you decide to get a payday loan
- Alternatives to payday loans
- The bottom line
What is a payday loan?
Why you may need a payday loan
Why you should avoid a payday loan
Payday loans are very costly
You likely will have to provide banking or credit card information
Repayment periods are extremely short
Your debt could balloon in a hurry
You can’t back out of the loan
What to do if you decide to get a payday loan
- Find out the payday lender laws for your state to ensure the lender you choose is compliant; your state regulator or attorney general should be able to confirm if the lender is licensed.
- Look for a direct payday lender, not a “middleman” lender or website that doesn’t lend money directly to borrowers. This could result in additional fees.
- Compare payday loan terms and conditions with at least three payday lenders to find the most favorable loan for you; look at the fees, APR, and repayment dates for a fair comparison.
- Choose a payday lender who doesn’t offer rollovers to avoid getting trapped into additional debt.
- Look for a payday lender who offers extended repayment options that don’t result in exorbitant fees.
Alternatives to payday loans
Borrow from friends or family
Ask for an advance from your employer
Do side work to earn extra cash
Sell personal items you no longer need
What are payday loans used for?
Are there benefits to payday loans?
What happens if I can’t repay my payday loan?
Do all states provide payday loans?
The bottom line
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