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5 Bumps

Anyone ever get a pay-day loan??

I am thinking about getting one until I get paid literally in a week. I am moving and they need first/last/deposit and I while I have that, I will only have $40 left for the week (and I need gas/food). So I want to get like a $200 loan, just to be safe.. My check will be more than enough to cover it. But I'm scared because people are always saying that they are "traps" etc.


Any suggestions? Thanks.

Answer Question
 
Anonymous

Asked by Anonymous at 2:58 PM on Sep. 2, 2010 in Money & Work

Answers (11)
  • Could you have a garage sale before you move? I wouldn't be at all surprised if you could bring in an extra $200 just from doing that. The problem with pay day loans is that the person getting them usually needs an extra $200- not just $200 a week or two in advance. So they get the loan, they get paid, the lender cashes the check and then they are $200 short plus the "fee" that they charge which is usually about 10% of what you borrowed.

    AS you can tell it gets expensive quickly. I would try everything else before getting the loan.
    Erica_Smerica

    Answer by Erica_Smerica at 3:01 PM on Sep. 2, 2010

  • Make it absolute last resort. I did it a few times, and it is a trap, it was necessary to me at the time, but basically you end up just paying it back when you get paid plus some, then you have no money for that week, and it's a vicious cycle. My advice? Scrimp and make do and make that $40 last the week, I've had to do it before, and it is more than possible. Best of luck.
    AshleyBDG

    Answer by AshleyBDG at 3:01 PM on Sep. 2, 2010

  • IT's a trap because you will owe them more money. It's like interest basically. It's not like they will just give you $200 and you give them $200 back, they will charge you.
    2BlondeBabies

    Answer by 2BlondeBabies at 3:01 PM on Sep. 2, 2010

  • They are horrible, high interest and they are not good for your credit score. I wouldnt do it all, have had to bail friends out of those horrid loans.
    browningmom

    Answer by browningmom at 3:06 PM on Sep. 2, 2010

  • I would rather use my credit card or just wait tell payday.
    louise2

    Answer by louise2 at 3:07 PM on Sep. 2, 2010

  • what 2BlondeBabies said. I had a friend that did that and she had a harder time paying them back for such a small amount. because it took to much out of there next check. It is not worth it.
    Raeann11

    Answer by Raeann11 at 3:07 PM on Sep. 2, 2010

  • it can be ok, but they do have high interest rates and you need to be sure you can pay it off next paycheck and still have money to cover your needs. my husband used to do this because he got paid well, but he would have rent due and not have the money to cove it at the time, but he had money he could spend on the fees each month without being short.
    happy-go-lucky

    Answer by happy-go-lucky at 3:10 PM on Sep. 2, 2010

  • I do not recommend this.
    Mom2Just1

    Answer by Mom2Just1 at 5:21 PM on Sep. 2, 2010

  • I agree with those who say NOT to do it, and just scrimp for ONE week, and slowly build yourself into a better position! That extra $20 dollars (conservatively speaking, 10% of your loan), when you're stretching your pennies can go a long way. Saving that $20 per paycheck will generate over $500 in a year. Now wouldn't you rather have that $500 in YOUR pocket, than giving it to someone else?!
    LoriKeet

    Answer by LoriKeet at 7:20 PM on Sep. 2, 2010

  • Do not use those types of services - the interest they charge is exorbitant!
    tasches

    Answer by tasches at 7:27 PM on Sep. 2, 2010

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