Pay Day Loan?

Updated on November 02, 2010
F.S. asks from Crandall, TX
20 answers

Anyone ever get a pay day loan? How exactly does it work? The pros/cons? What place did you go to? What do you look for? I see them everywhere so I'm wondering about them. TIA!

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So What Happened?

I didn't do it. I was too afraid of doing it anyway because of all I've heard. I just wanted some other NO's out there. Thanks so very much!

Featured Answers


answers from Washington DC on

it's a crime that these are even legal. stay away!
the interest rate is ruinous, and designed to keep you in their thrall.



answers from Eugene on

They closed all the stores in Oregon because we past a law of 36% interest cap. Payday loans said they couldn't do business in a state with such a low interest rate. WHAT!!!!!!!! Are you kidding. If you need a pay day loan. Better cut cable, internet, cell phone, and eat top ramen.

More Answers


answers from Washington DC on



I did this ONCE - you end up hurting yourself more - as the interest on the "loan" is usually 50%. So you just get further and further behind.

YOU CAN DO THIS WITHOUT A PAYDAY LOAN!! Yes, it will be tough. You will have to get by on the bare minimum - but DO NOT get a pay day loan.

If things are really tight - make a list of what MUST be paid (mortgage/rent, car, etc.) then call them and tell them what you can pay. Almost everyone is willing to work with you - it's better for them to accept a short payment than to pay lawyers and such for collection fees.

Mortgage and car payments can sometimes be moved to the back of the loan - DO NOT GET A PAY DAY LOAN!!

3 moms found this helpful


answers from Philadelphia on

Stay far, far away!!!! See your local neighborhood loan shark, who threatens to break your kneecaps if you don't pay, before you get a payday loan!! The loan shark cannot do half of the things that a payday loan company can do.

Juggle, tap dance, just skip pay day loans.....

1 mom found this helpful


answers from Chicago on

I know that I am a little late on this, but I agree with the ladies that payday advance places are sharks. And as the old saying goes, "If you swim with sharks, you will get bit". The main reason I am writing now is that I wanted to give you some help about how you can possible avoid the need for this in the future. My hubby and I finally have financial peace after starting to listen to Dave Ramsey. We have never had a lot of debt in our marriage, but we never felt like we were getting ahead. A major emergency would have really hurt us. Dave is great. We are now on his "baby step 4" (google Dave Ramsey baby steps) and have not had an argument about money in the year and a half since we started his program. You may want to look into his book, "The Total Money Makeover" or take his class "Financial Peace University". No, I do not work for him, no it does not cost a lot of money to get into his program (just buy the book on Amazon for around $10). You can even listen to his radio program for free if it plays in your area (google it) or download an hour long podcast each day for free. I am just a huge fan because I realize the benefit to my life. Best of luck to you!

1 mom found this helpful


answers from Oklahoma City on

don't do it if you can avoid it. they charge more than a cc would, i've never done one, and have heard nightmare stories.

if you can refrain from a loan like that.



answers from Colorado Springs on

Payday loans are a little like the fellow on the sidewalk trying to get you to buy his eighteen-carat-gold jewelry; if you fall for it you deserve the junk you really get. Only the loan sharks are worse, because with the sidewalk salesman all you lose is a little cash, but the loan people take and take and take and TAKE.

Yes, they're around everywhere. Loan sharks always have been.

Any deal involving money that seems too good to be true is REALLY too good to be true! If you're having trouble paying your bills, learn what you can do to get them paid without a "generous" loan from a "friendly" stranger.



answers from Boston on

Do not do it!!!!!!!!!!!!!!



answers from Orlando on

Wow, you got a lot of negative feed back, and rightfully so, But I'll shed a little light on the actual process, since I unfortunately, had to do this a few times myself. I will first start off by saying, I do agree with everyone in the fact that they can be bad news, BUT, IF you have to use the service, do it very cautiously. It's not something you want to always rely on, otherwise you will get into financial trouble with it. OK, with that said... It was about this time last year, when I had an unexpected (emergency) cost that was a little over my budget, well it put me back and I didn't know how I was going to grocery shop that week,basically put food on the table for my baby. I'm single, without family and could not ask friends for a loan.(please look into these options first before doing a pay-day loan, actually it's an advance of your paycheck, not a loan) So I went to Amscot (not sure if you have those in TX?) They do not give you a lot of credit, mine was $300, but I didn't need a lot, I only needed groceries and I only took $150, which I think cost $11. You write them a check, BUT you need to go in person to pay on the day of your next payday(they will give you a date). The check is only if you don't come back to pay, and is considered a default, that's bad. Anyway, I knew going into this I was going to be behind financially until I got my tax return in February, so I ended up doing this for a few months. I got paid every 2 weeks, well, bi-monthly (twice a month), the 1st and 15th. So this became routine, I went in every payday on my lunch break to pay, and I have to admit it was a bit degrading, BUT the extra cash got me through a very tough spot, and when my taxes came, I got all caught up, and now it's history. If you are needing more money than a couple of hundred dollars, the payday advance probably won't help you. I hope this helps a bit. It's hard to be in a financial pinch, I wish you the best of luck.



answers from Portland on

I'm so glad you chose not to get a payday loan. I recently worked in the collection dept of a local payday loan company. It was so sad to see people get in way over the head. We had customers who had been doing loans every month for years and years. With all the interest they paid they probably could of bought a house.
If you really need something try to put a little away each pay check.
You were very wise to get people's advice.



answers from Springfield on

DON'T DO IT. The best deal was 20% cost and it was due in 14 days or there was a 40% fee. They run the check through on day 14 no matter what so you better have the money. It is a rip.

I went to a car title loan place. She would not give me anything in writing so I could think about it. She finally admitted it was at least 20% interest, if I paid it in 30 days.



answers from Dallas on

I agree with staying away from payday loan(actually payday advances). You will end up paying SO much back. I totally understand how you feel with needing money so I can tell you what we did.

We needed money for Christmas soooo bad so I looked around at the payday loans and read reviews and felt relieved that I did not do it. Interest and fees will drag you under. We actually went into Rent A Center and they did payday advances so I got the info on it. We needed about $400 for Christmas so they they said with the amount we made we could get that much. The fees was $80 to get the $ in all they expected $480 back. That was really good so I went with that. They also mentioned that if we just couldn't pay them back by our next paycheck then we could have 3 weeks to pay it off BUT we had to at least pay $80 each of those weeks it wasn't paid off so they were fair. I would go to them if you just had to get a payday advance. It would be more easier to pay off and they will give you whatever according to your paycheck. So if you must then go through them, they are definitely reasonable, more so than any other payday loan. I hope this helps sweetie :)



answers from Missoula on

I agree with the other moms that they really aren't a good idea. I've never used one, but there was an article in my local newspaper about them yesterday, and here's what I know.
You borrow a relatively small amount of money for a short period of time, typically 2 weeks. Say you need $300. You write a check to the loan place for $335 (or whatever their rates are) and they agree to cash the check in 2 weeks. The idea is that you will be able to cover the check by your next payday. The fees may not seem like too much, but they typically work out to somewhere between 400-600% APR. Sure, no one borrows money for that period of time, but the business model is based on getting people to become repeat customers, they really do try to hook you so that you have no choice but to keep coming back.



answers from Wausau on

I work for a bankruptcy attorney. We have seen interest from pay day loans up to 400%. STAY AWAY FROM THEM.



answers from Dallas on

Getting payday loans are a terrible deal to get involved with--these loans set you up for an ongoing cycle of borrowing and repaying and reborrowing because of the way they are set up to be paid back. The interest rates are way too high. Some states have rules that clearly spell out the costs and interest rates, other states do not. I would avoid payday loans - they are not your friend.



answers from Johnstown on

DON'T DO IT!!!!! It's a never-ending cycle that takes you FOREVER to get out of! My hubby and I did this several years ago when our pay checks didn't coincide with our bill due-dates. I kid you not--it took us 2 YEARS and tax return money to finally get it paid off. The interest is a killer as well. It's just better to put up with your current situation than it is to even consider a payday loan.


answers from Dallas on

Agreed...DON'T DO IT!!! Very very very bad idea. All they do is screw you over.



answers from Omaha on

Glad you didn't do it. We got to where we had 3 different ones we were using!! 3. It was a 50 dollar fee per one a month. So every month we were handing over 300 dollars. Couldn't get out of it because it was so tight. So every single week we were at one. We just felt lost and someone who was removed from it said why not just take a bit off each time. So we took 25 or 50 whatever each transaction till we were done.

I'd never go back. Never. They get you in their little web.

So glad you never do and hopefully this will help others.



answers from Pittsburgh on

BAD IDEA! Always. Avoid these things like the plague.



answers from Detroit on

Whatever you do, if you can avoid it, DONT DO IT! You pay ridiculous amounts of interest and by the time it's paid off your probably going to end up paying 5x or more than what the original loan is. I am speaking from experience and I wish I would of never got one in the past!

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