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Anyone have experience with payday loans?

In a nutshell, I was offered a job and start Wednesday. Unluckily for us, we're completely broke, and I have to pay for childcare. It won't be a big deal after I get paid, but until then I have 2.5 weeks of childcare to take care of and that's not cheap. My husband works but his check would only be able to cover childcare and no other bills.

So I'm just wondering how hard it is to get a payday loan and if you really do get the money in 2 days or whatever. Or if it's as easy as it sounds, you write them a check and they cash it in 2 days or however it works. Thanks in advance!

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prettyrayray

Asked by prettyrayray at 3:53 PM on May. 11, 2009 in Just for Fun

Level 3 (16 Credits)
Answers (10)
  • Don't do it! They have the highest interest rates, it's unbelievable!! I would try to borrow the money from a friend or family member in the mean time. Good luck!!!
    AnnHenderson

    Answer by AnnHenderson at 3:56 PM on May. 11, 2009

  • Yeah, I heard about the interest rates.......
    prettyrayray

    Answer by prettyrayray at 3:57 PM on May. 11, 2009

  • How I understand they work is you go in and apply, you have to have a bank account which they call and verify. Then they give you the amount of money you qualify for and you have to give them a check. Then when you get paid, they go directly to your bank account and take that money out. I won't get one because I'm afraid of the interest! I'm not sure if they take the whole amount from your account or if they take it in payments.
    Anonymous

    Answer by Anonymous at 3:57 PM on May. 11, 2009

  • i have done it once will never do it again. for one thing the interest rate they charge is crazy. then on top of that, when you apply they call your work to verify employment etc so your boss knows that you are applying for one, which personally i didn't like b/c its not their business it's mine and as long as i can show proof of income why should you be calling? know what i mean? then last, you have about a month to pay it back which is fine to an extent but say you borrow $250 to pay for the childcare, you'll have to pay back probably between $300-$350 in less than a month, so now you're next two checks are short by about $150 which causes problems with the bills that are due with those checks. know what i mean? thats been my experience with it at least
    vabchmommy

    Answer by vabchmommy at 3:58 PM on May. 11, 2009

  • Try to find a private childcare. Like in home. I run an in home childcare, and if someone came to be and told me a situation like yours, i would only ask for maybe a 20$ deposite. You can find some that wouldnt require anything. Tell them you would pay them as soon as you get paid. Make sure you put that in the contract.

    Good luck!
    mommyofAurora

    Answer by mommyofAurora at 4:01 PM on May. 11, 2009

  • They make their money because its about a $40 fee and they assume that once the money you got loaned runs out, you will need another one to get you through til the next payday.

    They usually require a checking account and two back paystubs, so you would need to use your husbands income. You write them a check, and they cash it on the agreed upon date (next payday). If you're only going to do it once, it isn't a big deal...if it's worth the $40 for you to be able to go to work, that is. Sometimes the first loan is even free...it is when you get in the habit of going that you get in trouble. I've watched many a coworker get themselves in trouble.
    kabbot01

    Answer by kabbot01 at 4:01 PM on May. 11, 2009

  • DON'T DO IT!!!! Pawn your televisions, stereos, or what ever else you can possibly do.... DO NOT GET A PAY DAY LOAN>>> My son got tied up in that.... and it wound up costing him $738 just to borrow $150!! THEN like a dumbass, I did the Car Title Loan..... DO NOT DO THAT EITHER!!! With the title loan thing, you had to either pay it off or refinance it EVERY WEEK! So let's see... we borrowed $1500 against the title of the car - wound up Refinancing it once because we were still so broke.... we finally got a loan from the uncle to pay it off _ because they told us we had 6 hours to do something or they were coming to get the car - the whole thing wound up costing us $2300 - and that was for a 30 day loan!! DO NOT EVER DO ANY KIND OF PAY DAY OR CAR TITLE LOAN!! THEY SCREW YOU SO BAD YOU'LL WONDER IF YOU'RE EVER GONNA GET OUT FROM UNDER IT!!!!
    PaceMyself

    Answer by PaceMyself at 4:01 PM on May. 11, 2009

  • Vicious circle! Both my BFF and my SIL fell into that nightmare and it was soooo hard for them to get out.
    salexander

    Answer by salexander at 4:19 PM on May. 11, 2009

  • Hmmm...I wonder how else I can pull $500 out of my ass for 2 weeks. Most of the family is poor anyway, and I don't really want to pawn stuff that I would have to buy back in 2 weeks.
    prettyrayray

    Answer by prettyrayray at 4:21 PM on May. 11, 2009

  • Bad idea. I really am not interested in pulling anything out of your ass, but a friend of mine started using this and there came a point when her entire check went to pay all of the fees and charges. My suggestion is that after this crisis, you learn to be very good at budgeting.
    jesse123456

    Answer by jesse123456 at 7:01 PM on May. 11, 2009

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