Despite the bad rap that they’ve received, payday loans can be a real life saver for those without access to other forms of credit. If you’ve ever been in the situation when you needed cash fast and couldn’t get a standard loan, you know exactly what I’m talking about. Unfortunately, because the industry has some rather rampant abuse issues, this is an option which may not be available much longer.

Payday loans are intended to accomplish one simple thing. They are there to tide you over until you get your check when you run into a genuine emergency. Here are some examples of good and bad reasons for taking out a payday loan:

• Taking out a small payday loan to buy groceries because your kids need to eat may be a good idea.

• Taking out a payday loan because you’re out of beer (or malt liquor, or wine, or your liquor of choice) is a very bad idea.

• Taking out a payday loan to pay for car repairs so you can continue to go to work may be a good idea (assuming public transportation isn’t available).

• Taking out a payday loan so you can get new rims or spinners is a bad idea.

You shouldn’t take out more of a payday loan than you can afford to pay back with your next paycheck without needing to immediately borrow all of the money back again. Too many people get into the trap of borrowing as much as they can, then finding themselves in a bind when they need to pay it back because there’s not enough paycheck left to cover the week’s expenses. They end up borrowing the money again, ending up in a vicious cycle known as reloaning which often keeps people tied up for months at a time, paying exorbitant amount of interest.

Because some people have gotten themselves in over their heads with reloaning, and because some unethical lenders encourage the practice, several states have enacted laws governing the industry. These laws range from forcing lenders to disclose the actual annual interest rates to giving borrowers more liberal repayment options to outright banning payday loans altogether. If you live in an area where payday loans are still legal, make sure you use them carefully.

Image by AMagill

Having all the information to get the payday loan to fit your needs can make the process easier. Having tips to make the right choice can give you the ability to choose the right loan and lender for your own specific needs for when you need a short term loan. Below are tips in finding legitimate companies, tips for first time lenders and repayment information to make sure that this is the best financial solution for you.

1. Business PR: Tips to get the best loan from an online company that specializes in instant money.
2. Traveling Tips And Destinations: Information about choosing the right payday lender and why it is important to pay them on time.
3. Finding the Right Company: Choosing a legitimate company is vital, and this offers tips to make sure you are choosing one.
4. Hot Crew 57: Tips for first time borrowers.
5. Ayzor: A list of ideas to payday loan alternatives.
6. Loans Mortgages Tips: Advice on paperless payday loans.
7. Financing And Business: A list of things to consider when you are looking for a payday loan.
8. Stock Markets Review: Tips that can make getting and repaying a payday loan easier.
9. Learn about Grants: Tips to save money when using internet lenders to get the best rates.
10. Finance Guide: Offers advice on finding the best payday loan when looking online.
11. Adhesives: Looks at why you should use one, and offers advice on the use and repayment of the loans.
12. Car Loan Calculator: You can use these three tips to make getting a payday loan easier.
13. Loans For Unemployed: Things that should be considered before you borrow.  Also offers tips on getting the best loan for your own needs.
14. Arcrease: Tips to be smart when applying and choosing to use a payday loan.
15. Financial Highway: Scams are common, and these tips on how to spot them can help you make a smart decision.
16. Lower Shopping: Tactics you can use to get the best loan online
17. Finance Information: Using these tips can help you make sure you do not get into the financial trap of payday lending.
18. Share Money Tips: There are risks involved, and this shows some of them to be aware of.
19. Where Is Environmental Sky: A personal look about an experience with payday loans.
20. Finance and Business Tips: A look at the positive aspects to borrowing money from a short term lender.
21. Web Hosting: Tips for bad credit consumers to choose these types of loans.
22. Platform Finance: Looks at ways to make the application process easier.
23. Culture and Law: Tips to make sure the process is secure since you will be giving out personal information.
24. Financial Ideas: Tips to save money on the fees when you get a payday loan.
25. How to Invest Today: Gives the information on the process which can help you save time and know what to do before you apply.
26. Cuhrep: Tips to find the best interest rates for the loans.
27. El Campeon: Tips to find the best lender, including tips on faxless applications.
28. Life Style And Business: Tips to get your cash from the advance in several hours.
29. Technology Reviews:  Tips on faxless loans; includes how to find one and how to get them in minutes.
30. The Best Information Update: Shows how simple it is to get a loan, and tips to make it easy on you.
31. Ermes Computers: Tips for first time borrowers and ways to make the process simpler.
32. Make Money Online:  Looks at the process of online borrowing with tips on making the loan application easier.
33. Payday Loan Search: This gives tips on what to do when you get too many loans and the interest gets too high.
34. Free Credit Score Tips: Answers the question of credit with payday loans.
35. Pay 1 Day: Tips to get a personal loan
36. My Finance Blog: Tips to find the best price for companies that offer the loans.
37. News And Information: Tips to get a loan online in minutes.
38. Choice Personal Loans:  Offers tips on applying for the loan.
39. Cash Advance:  Many of the common questions of getting a payday loan are answered.
40. Tips Everyday:  Shows why an online loan is the easiest way to get money.
41. Blogging Tips By Goyz: Explains the process of the loan and what you are able to do with it.
42. Pan Fantasy: Tips for the borrowers to use to make the loan application easier. Also looks art the repayment aspect and why it is important.

Image Credits: stopnlook

Most payday loan places are happy to lend you up to 60% of your average take home pay. In many states, you can take out two or even more payday loans (generally from different places). It doesn’t take an economics professor to figure out that borrowing more than 100% of your take home pay, when you have to pay it all back, with interest, on the day you get your check, is a very bad idea.

Of course, when you need to pay more than you’re bringing in, your only option is to pay off the interest and borrow the money again (called re loaning). The problem is, you end up paying 10%-14% interest every single week until it’s paid off. And, as long as you have more than one payday loan out there, it’s awfully tough to pay them off.

I don’t want to paint a doom and gloom scenario. The truth is that you can get out of the mess even if you’re up to your eyeballs. Here’s what you do:

• Ask about your state’s regulations on payday loans. Many states require lenders to give you the option of paying off your loan in increments. Of course, that will probably mean no more payday loans from that company, and they’re likely to be pissed at you. So what.

• If you can’t pay your loans down in increments, try taking out a slightly smaller loan every time you borrow. You’re generally better off reducing just one loan at a time, in an attempt to get rid of one loan completely before you start reducing the other ones. One small step at a time, you can get yourself out of the cash advance hole.

• After you pay your loans off, start putting at least half of the money you had been spending in interest into a long term savings account. You can tell yourself you don’t make enough money to save all day long, but the truth is that if you can afford to pay it every week in interest, you can afford to put it in the bank for yourself.

Once your payday loans are all paid off, you can take a deep breath and relax. Celebrate. Maybe even buy something nice. Just make sure it’s not so big that you need to take out an advance to get it.

Photo via greggoconnell

But in what just might be the ultimate exercise in stupidity, many payday loans places are now offering their small, short term, high interest loans to people who don’t have jobs. Maybe it’s because, in our present economic situation, the pool of employed people to lend to has just become too small to be profitable. But giving a payday loan to a guy on unemployment? Come on, that goes beyond kicking a guy while he’s down.

Unfortunately, the unemployed are among those most likely to have a sudden need for cash. And they’re certainly amongst the most likely people to lack on hand funds. But taking out payday loans when there’s no payday in sight only makes the problem bigger.

We know, unemployed people do get an unemployment check. In most places, the unemployed can collect benefits for up to two years as long as they’re making some effort to look for a job. But the system that governs that whole mess can be volatile. Congress votes (or fails to vote) and wham! Benefits are gone. For a guy who has an outstanding balance on a payday loan, that means making the choice of giving up most of the last check he’s going to see until the Republicans and Democrats get together and decide to pay him or reneging on the loan. Neither one presents a pretty picture.

Payday loans have their place. But that place is for those who have a regular paycheck coming in. If you’re in the situation where you can’t count on the next paycheck, don’t take out a payday loan. In the end, you’re only hurting yourself if you do.

We remember being in this exact situation. We needed money, but we were unemployed. A good friend gave us excellent advice. When asked, “What are we going to do if we don’t take out a payday loan?” he asked us in return, “What would you do if payday loans weren’t available? Whatever it is, do that.”

Photo via dee & tula monstah

A Penny Saved

The best way to make sure that you don’t need to ever take out payday loans is to follow another of Benjamin Franklin’s pieces of advice, “a penny saved is a penny earned.”

If you take out a payday loan, you’re probably going to take out the max that you can. Simply put, if you didn’t really need the max, you wouldn’t be taking out a loan. Then, you will be paying 10%-14% interest on it every pay period until you pay it off and don’t re loan.

So, figure out what you would be qualified for. Calculate 60% of your take home pay (the typical maximum payday loan) by multiplying you’re a typical paycheck by 0.6, then figure 10% of that (multiply by 0.1)  to figure out how much interest you would be paying every pay period with a cash advance.

For example, if you take home an average of $300 per week, 60% of that is $180. And 10% of $180 is $18.

Now, think ahead. If you can save that $18 every week (or whatever your amount comes to), it won’t be long before you have a whole paycheck in the bank. At any rate, it only takes ten paydays before you have saved as much as you would be able to borrow from a payday loans store.

Now, if you have an emergency, you can borrow from yourself. But, make sure that if you do, you repay yourself. This is what people used to do before payday loans came along with a quick solution that ends up getting us into more trouble than it gets us out of.

Build Your Credit

Benjamin Franklin didn’t say this. Our dad did. He wasn’t as eloquent as the great statesman, but he had good advice. Start using credit responsibly and sparingly when you don’t really need it, pay the payments on time, and if you do hit a real need that takes more money than you can afford, you can take a much cheaper personal loan instead of a payday loan.

Photo via anolobb

But just like the person who is forced to defend himself, sometimes life backs you into a corner that you have no way to get out of without immediate help. That’s where payday loans come in. When you need money now to cover a real need that can’t wait until you get your check, taking out payday loans can help you get out of a tight spot.

Here are some examples of real needs that merit taking out payday loans:

• Your car breaks down and you need a couple hundred bucks for the mechanic to fix it. Without the car, you can’t get to work and stand to lose more money than you would if you took out the loan.

• Your rent is due (or overdue) and you stand to lose your home. Some landlords charge more for late fees than you will pay by taking out a payday loan and paying it back with interest.

• A death in the family or other serious emergency requires you to travel, and you need to go now. If you don’t have the money, a payday loan may be a viable option.

Here are some very poor reasons to take out payday loans:

• You want to buy something. It’ll wait until payday. If it doesn’t, you didn’t need it very badly.

• You want to go on a date. I know she’s probably fine, but if she can’t hold off a week or two, you don’t want her. Trust us on this one. Someone that impatient will cause you more trouble than she’s worth.

• You want to go on a trip. If you’re broke before you take a trip, imagine how broke you’ll be when you get back. The only difference is that now you have to give up 60%-80%, plus interest. Bad idea every time.

Here’s the short version of the long story: If you need it and can pay it back, go ahead and take a payday loan. But make sure that you really need it because taking out money that you don’t need will come back to bitch slap you every time.

Photo via Mark Cartwright

Payday loans are tough to get away from when you need money but get paid less frequently than many people or else you do not have enough to get b on a day to day basis. Payday loans have very high interest rates, so it is also very easy to get stuck in a rut with them, like just when you get them paid off you need to take another one out. here are some interesting articles about payday loans and why there are so many military families being plagued by never ending loans.

1. Kentucky Responsible Lending – This blog has a lot of information about what the state of Kentucky is doing to protect the commonwealth, especially through capping payday loan percentage rates for the military families who have lost too much.
2. DebtFree4Ever – This financial blog talks about what the state of Kansas may do about the harmful effects of payday loans in addition to what Congress has done for military families.
3. Political Wag – This blog talks about the sudden popularity of payday loans and cautions military families about why they are harmful.
4. Real Estate Info – This is a blog about all of the debt relief solutions available to military families including payday loans and the dangers of their annual percentage rates.
5. Reed’s Blog – This is a blog about Texas regulations on payday loans and why it is necessary to protect military families.
6. Center for Responsible Lending – This is a blog about the payday loan industry and what Congress has done to aid military and civilian families.
7. Veteran’s Plus – A blog about how the US Army and their families are being ripped off by payday loans and interest rates.
8. Pert Loan Shopping – This blog is about military payday loans and their downsides.
9. The Daily Progress – A blog that is about a city in Virginia whose residents and military families is tired of being scammed by payday loans and proposes new protections.
10. Coordination Problem – This is a blog about why payday loans are considered predatory toward military families.
11. Victoria Advocate – This is a blog about military payday loans and the downsides of interest and repayment.
12. Proinvests – This is a blog about how payday loan companies bait and trap military families in debt.
13. WP Article Press – This blog explains how payday loan companies try to get more money out of military families through fees because of the interest cap.
14. Payday Today – This blog is an unbiased informational resource for military families about payday loans and what they can do to harm them.
15. Payday Loans Blogs – This blog talks about how payday loans target military families and the elderly with enormous interest rates.
16. APL Financial Advisors – this is an informational blog about payday loans and how they affect military families, what critics say, and examples of how they work to charge astronomical rates.
17. Loan Military Payday – This is a blog about the cautions to military families about payday loans and why they can be dangerous.
18. Romanian Travel Zone – This blog talks about the popularity of military payday loans and why they are risky.
19. Home Equity Loans Arizona – This is a blog about how military families are targeted for payday loans.
20. Special Education Degree – This is a blog specifically about military payday loans and how families may fall prey.
21. My Mi Refinance – This blog is about the problems with payday loans for military families and what the government is doing to aid those families.
22. Rebuild – This is a blog about payday loans, their dangers and how military families can get through financial troubles with alternative solutions.
23. Jrvoicewire’s Blog – This is a blog about military emergency payday loans and how they are a bigger problem for families than the debt itself.
24. Business Loan – This blog talks about the tactics used by payday loan companies such as employing retirees to get military families to take their high interest loans.
25. Home Business Dynamics – This is a blog that uncovers the problems associated with payday loans and military families.
26. Standard-Examiner – This blog examines why military families are vulnerable to payday loans and why they plague these families.
27. One Hour Loans – This is a blog that talks about the high interest rates of payday loans that plague military families and how Chicago senators are outraged.
28. Cash Advance Loans – This blog warns about the facts about payday loans and their dangers to military families.
29. Army AER Loans – The controversy behind military payday loans and how they prey on families.
30. Billeater – This is a blog about the dangers of payday loans and how military families can escape the trap.
31. Americans for Fairness in Lending – This is a blog about why payday loans affect military families and what the government is doing to help.
32. SpouseBuzz – This is a blog about the evils of payday loans and their adverse effects on military families.
33. The Family Wallet – This blog explains why payday loans are always a bad idea for military families.
34. AZCentral – This blog is about the problems with payday loans and how the government is trying to stop them in order to aid military families.
35. The Lost Albatross – This is a blog about predatory military payday loans and why they are a problem.
36. Life Lessons of a Military Wife – This is a personal experience blog from a military wife about the dangers of payday loans.
37. Payday Loan – This blog explains why payday loans are hurting military troops and their families.
38. Virginia Law – This is a blog about the problems the state of Virginia had with the payday loan industry and how it plagued military families.
39. Surveysdo – This blog examines why payday loans are not for everyone including military families and what has been done about them.
40. New Healthcare Bill Facts – This is a blog about the state of Oregon’s struggle with payday loans and their adverse affects on military families.
41. Payday Loans – This blog exposes payday loans as rip offs to military families.
42. Consolidation School Loan – This is a blog about how the payday loan industry takes advantage of military families and why they are targeted.

Image Credits: cell105

Like a friend who has your back, a payday loan can be a life saver. Not only are they available to people with credit problems, but they’re available fast. Most of the time, with just proof of income and residence, you can sign a few forms and walk away with up to 60% of your average paycheck in cold, hard, green cash. In some states, you can even take out payday loans with more than one lender, so you can actually get more than your average paycheck on short notice and with little more than your autograph.

Here’s the thing, though. You have to be careful. If you don’t pay your payday loans off right away, they can end up costing you a lot of money. The interest rate is usually between 9 and 14 percent, which is a lot higher than bank loans, or even most credit cards. Add on top of that the fact that payday loans companies calculate interest differently than banks and credit card companies do.

If the cash advance places used the same standards and calculations, they’d have to tell you the Annual Percentage Rate is somewhere between 300% and 400%. You can see why they don’t advertise that. The difference is that the banks tell you what the yearly interest rate is while cash advance places only tell you what the flat interest will be for a short term (usually less than two weeks).

Let’s face it, if you’re like most people, you’re not going to be able to make it through the next week without borrowing some of the money back after you’ve given most of your check to your lender. That’s how they get you. As long as you keep coming back every week, you can kiss hundreds or even thousands of dollars good bye in no time flat.

We guess you could say payday loans are a friend who has your back when you need it, but they’re also a lot like those kind of friends you need to watch your back around. So, if you need one for an emergency, take it, but pay it off as soon as you can.

Photo via K. Kendall

Fortunately for the young man, one of the kids in the youth group was an Eagle Scout who had taken life guard training. He knew what to do and had a life preserver in the water before you could blink. The young man took a merciless ribbing over his diving incident (by all accounts his dive was spectacular, the swimming, not so much) for the rest of the trip, but otherwise he was no worse for wear.

But what would have happened if the Eagle Scout had thrown him an anchor instead? He would have sunk like a stone, of course. Everybody knows that, so no one would throw an anchor to someone who is drowning. Yet, trying to get out a financial emergency using payday loans isn’t much different than trying to pull someone out of the pool with an anchor.

Don’t get us wrong. A payday loan CAN be a tremendous help if it’s used as a stopgap for an emergency, and then paid off right away. The problem is that most people, instead of using it like a life preserver and getting out of the deep end of debt, try to swim around with it for months at a time. It doesn’t take long before what looked like a life preserver is as heavy as any anchor. If you don’t pay them off quickly, they will drag you to the financial bottom and keep you there.

The thing is this: payday loans should be a last resort. Most people have someone who could help them out short term. Hell, if you’re that dead set on paying high interest rates, offer them to a friend. At least then your money will go to someone you like.

The problem is, just like the kid who couldn’t swim, most of us don’t want to admit that we’re in a bad situation financially. But ask yourself this: what’s really worse? Letting someone know you can’t swim before you jump in the pool, or after?

Photo via Petteri Sulonen

Many times people may run short before their next paycheck. There are options out there but one that many people get into is a payday loan. These can seem like a great deal at the time. An advance on your paycheck and you pay it back when you are paid. Before you think about getting a payday loan, you should know the fine print. You will pay interest rates higher than normal loan rates and it can become a huge amount of money to pay back if you don’t payback the first payment. Look here to find some tips on what you should know before getting a payday loan.

1. Who Gets Them Find out here who uses payday loans and why they choose them.
2. Dangers Read here to learn the dangers you can face when choosing a payday loan.
3. How They Work Learn here how payday loans actually work.
4. World of Payday Loans Learn about payday loans and how they can cause more problems than before.
5. Trap Be aware of the trap you can fall into with payday loans before deciding to get one.
6. Very Costly The amount of money you have to pay back is much larger than what you originally borrowed.
7. Dangers One company shares the dangers that you can face when deciding to go with a payday loan.
8. Options There are other alternatives to getting a high priced payday loan.
9. Payday Lending Look at some of the problems you could face when choosing a payday loan.
10. Unknown Dangers Most people fall into the payday trap before they really understand what it means to get that loan.
11. Risks Know the risk involved with a payday loan before deciding to go that route.
12. Expensive Most of us at one time will need a cash advance of some sore, but beware of the pitfalls when choosing a payday advance.
13. Short Term Loans There are some dangers you will face, like high interest rates, when you consider taking a short term loan.
14. Facts Take a look at this fact sheet and how payday loans can actually make a small problem even worse.
15. Fast Cash Although it gets money to you right now, it can also bring on unwanted problems.
16. Pros and Cons There are some good things about payday loans but also take into consideration the problems that can be attached too.
17. True Cost A chart that shows you the true cost of using a payday loan.
18. Advantages and Disadvantages This blogger outlines both for you in one place.
19. Payday 101 Learn what a payday truly is and how you go about getting one.
20. Short Term One blogger shares their opinion and beliefs on these payday loans and what they can involve.
21. Reputable Company Here are some tips, if you choose to get a loan, on how to find the right company.
22. FAQ Here are some FAQ when looking at getting a payday loan.
23. Pitfalls Learn the ins and outs of payday loans.
24. Payday Pitfalls With our economy in the state it is, many people are turning to these type of loans. Find out what you could get into when choosing this loan.
25. Cycle of Debt Learn what this is and how to keep yourself out of it.
26. Fees The fees can be compared to that of a loan shark at times.
27. Good or Bad The choice is yours on whether you think it is good or bad. Here is some helpful information to help you decide.
28. Shedding Light One organization helps to shed some light on the problem of payday loans
29. Stay Away Some bankruptcy attorneys say to steer clear if you have problems with bankruptcy.
30. Important Information Here are some important facts to know before signing on the dotted line with a payday lender.
31. News You will find news and information that is coming out about payday loans here.
32. Fast Not Easy Although you are able to get money quickly, you may not be able to pay it back so easily.
33. Guide to Lenders Here is a guide to finding a reputable lender when looking into payday loans.
34. Loan Sharks Read here about some forums that are fighting for tighter laws on payday lenders.
35. Reviews Here are a few reviews on payday loans and information about them.
36. Consolidating Learn here how to consolidate your payday loans if you have fallen into the pitfalls of payday loans.
37. Scams Be aware of some of the scams that come with payday loans.
38. Benefits of Loans Here are a few benefits you may get from choosing to do a short payday loan.
39. More Benefits You must decide if these benefits out weigh the risks for you and your financial situation.
40. Benefits VS Risks Look at both sides of payday loans and see if they are right for you.
41. Cheap Loans Learn whether they are really cheap and what benefits can be found.
42. The Right Time Find out when the right time would be to get a payday loan.
43. Instant Learn about instant paydays and how you can benefit from them.
44. Fixed Incomes Those with fixed incomes also try and benefit from payday loan usage.

Image Credits: PinkMoose