What exactly is a payday loan?

Payday loan sucks!!

If you don't know about this business, good for you. This is for those who have enough cash to make the payments within the next payday. If you roll it in the next month, you end up paying high fees. Most people use this money during emergencies. Needless to say, the problems are never fixed.

This particular site I believe it non-profit; it is a bunch of people that help each other with their financial problems.

But payday loans are FAR from being non-profit!!

In theory, a payday loan is designed as a very short term loan (2 weeks) to tide you over until your next pay day. You might need $500 to fix your car today, but you don't get paid until next Friday...

They would generally give you between $300-$1500 dollars, on the basis that you repay the entire loan within 2 weeks. The interst is usually between 300% to 800% apr, but in such a short period, it comes to about $75-$150 as a dollar value.

The problem is, if you cannot pay off the entire loan when it comes due, then they try to "roll" the loan over. That is, they get you to pay the interest ($75) and then give you another two weeks. At the end of those 2 weeks, you owe another $75 in interest.
If you are always paying "just the interst", you will basically never pay it off, and anything you give them will always be intersest.

Payday loans are not meant to be a solution to one's financial problems... they are "easy" cash and you can easily get yourself into far worse problems than you had to begin with.

I'm glad you don't know what a payday loan is..I wish I didn't!! Stay away from them.

A payday loan is where payday loan companies steal your money by exceeding what the states allow in the way of finance charges. They are an addiction and very hard to break away from. If you borrow $300.00 and the finance charge is $90.00 each pay period and you can't afford to pay it back, then you are charged the next pay period $90 and so on. So if you do the math, you are better off without a pdl. My advise is STAY AWAY, STAY AWAY from the payday loan industry. They lead to finacial ruins!

Payday loans are not worth the $ that they loan you. They are just a road to huge fees, overdrawn accts, and HARASSMENT!!!!!!!!!!!!!

This is what apayday loan is

[quote]"Before making a loan, legitimate lenders assess the ability of potential borrowers to repay it. Payday lenders do not. In fact, their business is built on making loans borrowers cannot afford to pay off, so that they will keep coming back and paying repeated fees on the same small amount of money borrowed. CRL's 2003 study of the payday lending industry shows that this business model costs Americans an estimated $3.4 billion annually.

To obtain a loan, a borrower gives a payday lender a postdated personal check or an authorization for automatic withdrawal from the borrower????????s bank account. In return, he receives cash, minus the lender's fees. For example, with a $300 payday loan, a borrower might pay $45 in fees and get $255 in cash.

The lender holds the check or electronic debit authorization for a week or two (usually until the borrower's next payday). At that time the loan is due in full, but most borrowers cannot afford to pay the loan back and still make it to the next payday.

But if the check is not covered, the borrower accumulates bounced check fees from the bank and the lender, who can pass the check through the borrower????????s account repeatedly. Payday lenders have used aggressive collection practices, sometimes threatening criminal charges for writing a bad check even when state law prohibits making such a threat. Under these pressures, most payday borrowers get caught in the debt trap.

To avoid default, they pay another $45 to keep the same loan outstanding, or they pay the full $300 back, but immediately take out another payday loan, with another $45 fee.

In either case, the borrower is paying $45 every two weeks to float a $255 advance ???????? while never paying down the original amount of the principal. The borrower is stuck in a debt trap ???????? paying new fees every two weeks just to keep an existing loan (or multiple loans) outstanding"[/quote]
STAY AWAY FROM THEM, CALL YOUR MOM YOUR DAY A NEIGHBOR, BORROW FROM YOUR KIDS OR DOG BUT DO NOT USE THESE MONEY SUCKING THIEVES!

Great job Ashley2006.....I am glad to see that kind of info on here....Some ppl would just think that it is a easy way to get money and you just hit the nail on the head...

Stay away from Payday Loans, they are nothing but headaches. Tough to get rid of.

Payday loan companies operate on the internet and as actual storefront operations. They can have a variety of names, like "quik this" or "money place" or similiar. They make it seem like they are there to help the customer out, but it is just for them to make money. Especially, if you are caught up in the cycle of getting one to pay the other. Take all the advice offered here and STAY AWAY.

Stay away from these people. I wish that I would have. KYSIDE38

Yea, me too. If I hadn't messed with these crooks, i think that I could have had my credit cleaned up even faster.

As everyone here has stated, these pay day loan companies are nothing but trouble. I am so glad you haven't borrowed money from one yet. DON'T EVER! They're bad news.

Payday loans are the type of loan you would seen in the extreme emergency. They are only meant for short-term use, and carry a high interest rate. A checking account is required, as well as direct deposit from your employer. The due date of the payday loan is usually the following payday for you, and the company will debit their money back. You can expect to pay anywhere from $20-$30 for every $100 you borrow.

Some states outlaw payday loans, so be sure to do your research before seeking one.

Also, if its possible for you to borrow from someone else, that'd be a better path for you. Some payday loans also have games, and neat incentives to keep you coming back. That's their hook. You're no longer in need of one, but they hook you with their incentives.

You never want to default on one. My advice, ignore even getting one if at all possible.

Regards
Mike