Saturday, November 6, 2010

Payday Loans (aka Paycheck Advances)



A payday loan (or paycheck advance) is a short term loan that's designed to cover the borrower's expenses until the next payday.  Sometimes, this type of loan is also referred to as cash advances.  (Cash advances can also be taken against an existing line of credit like a credit card.)

Payday loans don't fall under as strict legislation like conventional secured loans (homes, cars) and unsecured loans.  It is common to have a payday loan have an APR of over 50%.  Therefore, it is imperative that the individual who takes out the payday loan pays it back as soon as possible to avoid extreme interest charges.

Paycheck garnishments are never fun.
If necessary, only use payday loans as a short term solution to a cash shortage problem.  People who run payday loan shops know that the business is very profitable.  Since you use your paycheck in the application process, a default on the payday loan can easily be taken to court, and a judgment will result in a garnishment of your wages.  A $200 loan could eventually turn into a couple thousand dollars if the process is dragged out long enough.  Also, your credit score will dip due to the default.

76 comments:

  1. Great info, I'll be sure to keep this in mind the next time I have need for a cash advance.

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  2. Always wondered how this places made money and well, now I know.

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  3. If you must take out a loan, I think you’re better off getting one here than at the bank, at least in my opinion! They are much quicker and they cost less if you pay them back on your next payday!

    btw please turn off that fucking captcha.

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  4. I have seen a ton of ppl use these places like mad and never pay back.

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  5. I'll use payday loans only at the right moment :D

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  6. Thanks for the info, I got smarter :o)

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  7. I always knew there was a reason they stayed in business.

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  8. Hrm, good tips here. Imma follow this for future references. Thanks for checking out my blog! Be sure to follow :)

    WereAndWillBe.blogspot.com

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  9. Great info, looking forward to reading more. Cheers SOLLLLIIDDD

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  10. I never knew this existed. Amazing.

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  11. Hey buddy do me a favor, kindly click a link under Sponsor Link. I will do the same with you, thanks!!! Looking forward for this... happy blogging as well as more earning.

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  12. good stuff to know for when i get a job

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  13. fucking money, how do it work?

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  14. those are just too expensive though so beware

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  15. Gonna need to take out a loan soon. Your post really helps

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  16. Watch out for these sneaky loans... try to keep interest low... amirite?

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  17. Those payday loans are SO not worth it in the long run...and I find it funny that your ads are all for payday loans, lol

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  18. Awful that these even exist...but I guess where there's a sleazy market, you'll have sleazy ppl there to exploit.

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  19. i do debt collection for a couple different payday loan companies. the ones i work for do not offer rollovers or extensions, and you cannot have the loan for more than two weeks or it is considered outstanding.

    it never ceases to amaze me how many people do not read their contracts, however. watch out for the companies than let you make payments, because you end up just paying the minimum (the accrued interest) and never actually touch the principle.

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  20. Really interesting stuff, thanks!

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  21. I try to avoid needing loans as much as possible.

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  22. thanks for this post dude :)
    this is pretty interesting

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  23. Kewl story, bra! waiting for updates from you

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  24. I've never had to use these, and I'm kinda glad I didn't now.

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  25. Your post could be very helpful, thanks

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  26. I try not to do loans at all :P

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  27. Well I know what to do if I ever need one now thanks.

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  28. Yeah I was told about this as a kid, I hope I never need to take one out with 50% APR.

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  29. great post & really awesome blog :)

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  30. Hopefully I'll never have to take one of these out.

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  31. I really don't like the idea of this.

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  32. Thank you for this information, I will be sure not to borrow too much money!

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  33. thanks for chekcing me out bro, another economic blog to folloow!

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  34. That's a really good idea. I don't want to take out many loans though and doing this i'd depend on it too much.

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  35. Good tips. I'll definitely remember this.

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  36. Thanks for posting this, I think a lot of people get sucked in by these places and end up suckers.

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  37. YEAHHH now I won't go poor. THANKS !!! :D

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  38. payday loans are worth it if you just need a little more money before your next pay imo ...

    and, as a side note, if you could turn of the captcha it would be great :/

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  39. 50%? Funny they don't mention that in the ads.I hope i never need to use this type of service

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  40. @icequeen100
    I think that is because the adds react to the content on your blog/site

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  41. Thanks for your support. These loans are killer if not properly treated, but I guess they are a necessary service for some.

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  42. Yeah payday loans are not the best things

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  43. Holy crap, I am never getting one of those. Makes you go broke so fast!!!

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  44. Very nice blog about loans and credit! Quite confused why you named yourself a Cunning Linguist though, because I major in Linguistics and thought this would have something to do with it :P

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  45. Really interesting post! lots of good info!

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  46. damned loans, they are trying to kill us! :D great blog!

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  47. great info thx for sharing with us

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  48. Nice blog! You have a new follower! ^^

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  49. Oh god... these things are the WORST!!! I tried to get one of these just moments ago and after submitting my information to 1 load officer, I got spammed with 100 different e-mails, mostly from the same 4 or 5 systesm under different names. Not only that, my cell phone blew up with automated calls every 2 minutes with the same pre-recorded message. NEVER... NEVER again will I attempt to get one of these, simply by the fact that this bombardment of duplicate and dubious offers is annoying as hell. My mobile carrier even picked up on the automated call bombs and started blocking the numbers and removing the calls automatically from my voicemail. So... yeah... that's my experience. I ended up deciding not to get the loan just because of this horrible spamming experience. WHAT A NIGHTMARE!!!!

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