How To Use Payday Loans

Manage Your Personal Finances With Ease!

Seems like at one point or another everyone has an unexpected expense that has to be paid that falls outside of our ability to come up with readily available cash to cover it.

These times are when those who do not have good credit need to know how to use payday loans.

Learning the ABC’s of how to use payday loans should be a prerequisite of getting your first loan for without the knowledge of how they work you will have an 80% chance of defaulting on your loan, or as we say a member of the 80% club.

We at help With Payday Loan Debt thought we would put together a bit of a “payday loan tips” post for people to follow when they use these services.

Payday Loan Tips

Lets take a look at some of the common decisions one has to make when thinking of taking out a payday loan.

  • What do I look out for?

Tip 1: Avoid online payday loans at all costs!

These loan companies are many times run outside of the country and do not follow any lending laws storefront companies must follow.

They also tend to charge outrageous interest, for example a 500 dollar loan will cost you 150 dollars for two weeks and they follow tricky pay back rules.

It is best to avoid these companies at all costs.

  • So where do I get the loan?

Tip 2: Choose a storefront payday loan company that is open about their fees and due dates. If the company in any way seems shady or secretive in their information walk away.

See Also:  Payday Loan Collection Scams

These companies should tell you up front what all the fees are, when your due date is and what your options on that due date are.

If there are no companies close to you, check the boarder towns in the surrounding states. Many times they are licensed to do business in both states.

  • How do I determine how much my loan should be?

Tip 3: Never borrow more than you can pay off in full on your first payday.

If you borrow more than you can pay back all at once you end up getting caught in the payday loan trap.

This trap is where you end up rolling over your payday loan and accruing a whole new batch of fees and interest rates on top of the ones you already have, leading to incredibly fast increase in your outstanding balance.

Before you know it you are trapped and can not make the payments, thus you become part of the 80% club.

  • What will I need to take out a payday loan?

Most payday loan lenders require you to have proof of a job that pays at least $800.00 a month, that you have direct deposit into a checking or savings account, and proof of who you are like your drivers licence or photo ID and your social security number.

They will ask you the usual questions and they do require you to give them at least 3 references with phone numbers.


If you find yourself faced with taking out a payday loan and you follow the above tips, you should be able to walk away from the experience relatively unharmed.

See Also:  Old Payday Loan Debt Collectors calling?

You will have paid high interest and high fees for a short term loan but other than that you will be OK.

Remember, if you do become part of the 80% club you will be subject to some of the most aggressive and abusive collection practices known to man, so it is best to avoid this club.

We hope this information helps you in your payday loan experience.

Recommended Articles