Avoid Payday Loan Companies

by Charlotte Wood
(last updated August 18, 2017)

I completely understand the mentality of needing your paycheck before your payday. It's a stressful feeling and one to be avoided if possible, however heading over to a payday loan company is not the solution. Those companies charge you exorbitant fees and you run the risk of getting into greater debt. Payday loan companies are at the edge of slippery financial slopes that can be difficult to get back on top of. They're just not worth it.

What payday loan companies basically do is give you an advance on your paycheck, except that they charge you outrageous fees for doing so. When you go into one of these establishments you postdate a check for the amount you want advanced, plus a fee. They give you the cash and when the date comes the company cashes the check.

The consumer trap this appeals to is simple: Get people to spend money they don't really have and pay a hefty price for it. Payday loan companies are supposedly convenient but tend to trap people in a never-ending spiral of debt. Working as a bank teller for two years I saw dozens and dozens and dozens of people from payday loan companies trying to cash bad checks and the people who owed them money didn't have a cent themselves. It was always going on and was never worth it.

The best way to avoid payday loan companies is to budget your money so you don't ever spend money you don't have. If you have to negotiate with your creditors or borrow some quick cash from a family member then do it before you go to a payday loan establishment. If you show an active interest and responsibility regarding your bills, companies will notice that and will most likely hear you out. If you do borrow money from a family member or friend however, pay them back as soon as possible and don't ever borrow more than you need.

If you are chronically short on cash, if your payday never seems to conveniently coincide with your due dates, you can consider taking out a small, low-fee credit card to bridge the gap. Once again, however, don't spend more than you have. If you can't pay back your credit card bill then don't spend that money in the first place. You don't want payday loans to dig you a debt hole, so don't allow credit card debt to blight your credit.

The best way to avoid payday loans is as simple as that: avoid them. There are other alternatives and the best way to eliminate the need is to budget your money and spend only what you have. If you don't know how to wisely budget your money then look into credit counseling or seeing a financial advisor. Whatever your financial state though, payday loans are never worth it!

Author Bio

Charlotte Wood

MORE FROM CHARLOTTE

Coloring Your Hair

Hair coloring has been around for decades and is still going strong in the hair fashion world. It's fun and gives you a ...

Discover More

Understanding Capital Gains Tax

Capital gains tax is one of those terms you probably don't understand, but one you probably should if you want to go into ...

Discover More

Best Eye Creams

As you age, your face shows it. Get the rundown on various eye creams, and be prepared to combat unwanted fine lines and ...

Discover More
More Money Tips

Debt Elimination

One of the biggest financial goals of families today is to get out of debt. Eliminating debt is often an overwhelming and ...

Discover More

Why Interest Matters

Debt is pretty much an accepted part of today's world and if you don't consider all the aspects of it, you'll be in ...

Discover More

Effective Debt Counseling

Debt counseling can be a great way to plan your way out of debt and pave your road toward financial freedom. You just ...

Discover More
Comments

If you would like to add an image to your comment (not an avatar, but an image to help in making the point of your comment), include the characters [{fig}] in your comment text. You’ll be prompted to upload your image when you submit the comment. Maximum image size is 6Mpixels. Images larger than 600px wide or 1000px tall will be reduced. Up to three images may be included in a comment. All images are subject to review. Commenting privileges may be curtailed if inappropriate images are posted.

What is nine minus 2?

There are currently no comments for this tip. (Be the first to leave your comment—just use the simple form above!)