Payday Loans & What You Should Know

I need to take a little detour here and talk about payday loans. If you have a steady job, a payday loan can get you through a short term money crunch, but there are a few things that you need to be aware of.

A payday loan is expensive. The interest on payday loans is quite high and the amount of time you have to pay it back is short, usually 18 days or less. Payday loan companies will determine the pay back date by the date your are to receive your next paycheck.

The amount you will be able to borrow will depend on your state. In some states you can borrow as much as 1500.00 until your next paycheck but in California there are laws which prohibit payday loan companies from lending you more than 300.00 at a time.

If you do decide to take out a pay advance, make sure you are dealing with a licensed (in your state) payday loan company. It is easy enough to verify online. There are some predatory out of state companies who do not have legal license to do business in your state that will lend you money and require an outrageous payback.

Desperate people sometimes agree to outrageous terms but the truth is that these unlicensed loans are illegal. Pay back the principal but they have no legal legs to collect more than that.

You don't have to trust me on this (always verify everything you read on the internet) but know that I tend to learn things the hard way.

And good luck to you. I want nothing but the best for all.

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