Does FTC offer protection to the payday loan borrowers?

Hi Jones

Welcome to the forums.

Under the Truth in Lending Act, any payday loan company is required to put the necessary details of the loan agreement in clear view. You are required to get complete information in writing, including the rates of interest and the apr.

If you are having problems in paying your lenders, take help from your employer, a credit union or any other housing authority that might charge a very low amount on a credit counseling program. The consumer credit counseling services are non profit organizations that are available in every state.

When you are borrowing a payday loan, make it a rule to pay it within the due date. The revolving charges are very high and if not handled at the proper time can become painful and cause financial worries. Borrow only that much amount that you can afford to pay in your next paycheck and will still have enough surplus to pay for the next payday even.

Work on a fixed budget that is realistic. Write down all your monthly and daily expenditures and compare it with the income. It is also advised to avoid any sort of unnecessary purchases that can save even a dime. Try to multiply your savings. For this, you can make some deposits with your bank. This cash can be used to meet the unavoidable emergencies in the future. Think rationally before you approach a payday loan lender. Calculate the interest that is charged on a $300 dollar loan. Put these fees in a savings account for six months, you will get extra dollars on the amount of money saved. This will give you a heads up to meet the financial worries arising in the future.

Regards
Roxette