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How do payday loans work?

I really, really REALLY don't want to get on but I need to pay my rent and I have $20 in my bank account. I am not sure how those loan place work.

 
Anonymous

Asked by Anonymous at 3:47 PM on Jun. 18, 2010 in Just for Fun

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Answers (8)
  • I am so sorry you're in this situation. Payday loans are nothing more than legalized loan sharking. I hope you can find a better way to get out of this. Good luck.
    Robsmommy

    Answer by Robsmommy at 9:27 PM on Jun. 18, 2010

  • Your better off just asking your landlord if you can be late and pay a late fee. Those payday places charge you a ton of interest. And what happens is, you already behind so you get the loan, you can't payback the loan so you borrow again. Eventually you will end up owing them a tin of money. Just don't do it. Really call your landlord and beg for mercy.
    Anonymous

    Answer by Anonymous at 3:51 PM on Jun. 18, 2010

  • if you can find a way to just talk to your landlord and make arrangements you'll be better off. payday loans have super high interest rates and you have to pay them back generally in two weeks or else pay a phenomenal fee just for the privilege of having two more weeks to pay the entire thing off with interest. for example a $200 loan may cost you $275 to pay off or nearly $100 to continue. if you are having trouble managing your money, these are money-sucking traps. if you can even borrow from a friend or family member you will save yourself alot of money. also, if you need help paying your rent, there are emergency places that can help - local churches generally know where these are. if you absolutely have to get one make sure you can pay it off right away and budget so you don't get trapped.
    figaro8895

    Answer by figaro8895 at 3:53 PM on Jun. 18, 2010

  • We did, we tried to give him a money order for the actual rent amount, but didn't have enough to cover the late fee and asked if he could tack it onto our next rent payment but he refused!! He wants the full amount now. I've always paid my rent on time, never late, this is the first time I paid it late and he still won't work with me. I am so screwed
    Anonymous

    Answer by Anonymous at 3:55 PM on Jun. 18, 2010

  • Please try to find another way. You will end up paying quite a bit in fees; I believe it works out to 30%, but you could call first to find out.
    Scuba

    Answer by Scuba at 3:55 PM on Jun. 18, 2010

  • that sucks :-( so you just need late fees now or did you spend the money order? payday loans will only give you up to a certain amount based on your pay... so depending how much you qualify for versus how much your rent is this may be a problem. if you must get a loan rather than just find a way to come up with the late fees and you need to borrow more than you can get at a payday loan place title loans can be better - the interest rate is still ridiculous but you can get a lot more and you have 30 days to pay off. again, it is in your best interest to pay this down, pay them off, as quickly as possible. try the mission/emergency help route before you get in that trap if you can.
    figaro8895

    Answer by figaro8895 at 4:02 PM on Jun. 18, 2010

  • TRUST ME WE ARE UNDER THEM PLACES NOW I would not go to one to save my life!! I can't get out from under them even when I did pay them off it left me hundreds behind. They know this and this is why they know after you've paid them off you'll be back in cuz ur short again...Go somewhere else like a relative or something.
    chica679

    Answer by chica679 at 4:13 PM on Jun. 18, 2010

  • Those things prey on people try to find another way, hun... My husband told me the Military will not let soldier's use them for that reason.

    Anonymous

    Answer by Anonymous at 5:08 PM on Jun. 18, 2010

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