Payday loans are tough to get away from when you need money but get paid less frequently than many people or else you do not have enough to get b on a day to day basis. Payday loans have very high interest rates, so it is also very easy to get stuck in a rut with them, like just when you get them paid off you need to take another one out. here are some interesting articles about payday loans and why there are so many military families being plagued by never ending loans.

1. Kentucky Responsible Lending – This blog has a lot of information about what the state of Kentucky is doing to protect the commonwealth, especially through capping payday loan percentage rates for the military families who have lost too much.
2. DebtFree4Ever – This financial blog talks about what the state of Kansas may do about the harmful effects of payday loans in addition to what Congress has done for military families.
3. Political Wag – This blog talks about the sudden popularity of payday loans and cautions military families about why they are harmful.
4. Real Estate Info – This is a blog about all of the debt relief solutions available to military families including payday loans and the dangers of their annual percentage rates.
5. Reed’s Blog – This is a blog about Texas regulations on payday loans and why it is necessary to protect military families.
6. Center for Responsible Lending – This is a blog about the payday loan industry and what Congress has done to aid military and civilian families.
7. Veteran’s Plus – A blog about how the US Army and their families are being ripped off by payday loans and interest rates.
8. Pert Loan Shopping – This blog is about military payday loans and their downsides.
9. The Daily Progress – A blog that is about a city in Virginia whose residents and military families is tired of being scammed by payday loans and proposes new protections.
10. Coordination Problem – This is a blog about why payday loans are considered predatory toward military families.
11. Victoria Advocate – This is a blog about military payday loans and the downsides of interest and repayment.
12. Proinvests – This is a blog about how payday loan companies bait and trap military families in debt.
13. WP Article Press – This blog explains how payday loan companies try to get more money out of military families through fees because of the interest cap.
14. Payday Today – This blog is an unbiased informational resource for military families about payday loans and what they can do to harm them.
15. Payday Loans Blogs – This blog talks about how payday loans target military families and the elderly with enormous interest rates.
16. APL Financial Advisors – this is an informational blog about payday loans and how they affect military families, what critics say, and examples of how they work to charge astronomical rates.
17. Loan Military Payday – This is a blog about the cautions to military families about payday loans and why they can be dangerous.
18. Romanian Travel Zone – This blog talks about the popularity of military payday loans and why they are risky.
19. Home Equity Loans Arizona – This is a blog about how military families are targeted for payday loans.
20. Special Education Degree – This is a blog specifically about military payday loans and how families may fall prey.
21. My Mi Refinance – This blog is about the problems with payday loans for military families and what the government is doing to aid those families.
22. Rebuild – This is a blog about payday loans, their dangers and how military families can get through financial troubles with alternative solutions.
23. Jrvoicewire’s Blog – This is a blog about military emergency payday loans and how they are a bigger problem for families than the debt itself.
24. Business Loan – This blog talks about the tactics used by payday loan companies such as employing retirees to get military families to take their high interest loans.
25. Home Business Dynamics – This is a blog that uncovers the problems associated with payday loans and military families.
26. Standard-Examiner – This blog examines why military families are vulnerable to payday loans and why they plague these families.
27. One Hour Loans – This is a blog that talks about the high interest rates of payday loans that plague military families and how Chicago senators are outraged.
28. Cash Advance Loans – This blog warns about the facts about payday loans and their dangers to military families.
29. Army AER Loans – The controversy behind military payday loans and how they prey on families.
30. Billeater – This is a blog about the dangers of payday loans and how military families can escape the trap.
31. Americans for Fairness in Lending – This is a blog about why payday loans affect military families and what the government is doing to help.
32. SpouseBuzz – This is a blog about the evils of payday loans and their adverse effects on military families.
33. The Family Wallet – This blog explains why payday loans are always a bad idea for military families.
34. AZCentral – This blog is about the problems with payday loans and how the government is trying to stop them in order to aid military families.
35. The Lost Albatross – This is a blog about predatory military payday loans and why they are a problem.
36. Life Lessons of a Military Wife – This is a personal experience blog from a military wife about the dangers of payday loans.
37. Payday Loan – This blog explains why payday loans are hurting military troops and their families.
38. Virginia Law – This is a blog about the problems the state of Virginia had with the payday loan industry and how it plagued military families.
39. Surveysdo – This blog examines why payday loans are not for everyone including military families and what has been done about them.
40. New Healthcare Bill Facts – This is a blog about the state of Oregon’s struggle with payday loans and their adverse affects on military families.
41. Payday Loans – This blog exposes payday loans as rip offs to military families.
42. Consolidation School Loan – This is a blog about how the payday loan industry takes advantage of military families and why they are targeted.

Image Credits: cell105

But two payday loans? Come on, who does that? Unfortunately, more people than you think. Right now, you’re either patting yourself on the back for being someone who doesn’t buy things on that kind of an impulse, or you’re saying,” Oh my God, I’m the kind of person who would do something like that.” Or, worse, “Oh my God, I’m the kind of person who has done something like that.”

Now we don’t know if our neighbor will be able to pay those loans off on her next payday. Since payday loans are typically 80% of your paycheck before the exorbitant interest, we’re guessing probably not. At the very least, she probably won’t be able to pay both of them back.

The kids are out back on the other side of the fence having a grand old time in the pool. We might even go over and join them. Hey, just because she’s willing to borrow herself into oblivion just to cool down is no reason to stay out of the pool. But seriously, we’re hoping we can have a real talk with her about this sometime, because it’s going to end up running her family’s finances into the ground.

Payday loans have their place. If you have poor credit, and you find yourself in an emergency, by all means, take one out if you need to. There are times, albeit rarely, when not taking out the loan can cost you more than taking it out. An example is if you need to pay for car repairs and don’t have another way to get into work. Losing hours or, worse, your job may be worse than having to pay back the loan and its interest.

Just don’t get in the habit of taking out payday loans, and especially not for impulse buying. There really isn’t anything that you need that badly that it’s worth giving up your whole paycheck for. Ask yourself before you take out a payday loan, “Is this something that really can’t wait a few days or a week until payday?” And if that isn’t enough to curb impulse buying for you, bring a trusted friend into the mix and ask them to help you decide whether something is worth taking out a payday loan for or if you should wait for it.

Photo via Concrete Forms

You Need To Get Out

Here’s the thing. You don’t have to stay in that cycle forever. There are ways that you can get out of it. The simplest option is to just borrow a little bit less every time you take out payday loans. I know it can be tough making your bills on what you’re able to take home, but if you don’t want to keep handing money over every week, this is what you have to do. Consider this: If you’re maxed out on your payday loans, and another emergency hits, what are you going to do? Not a pretty picture, is it?

You Can Get Out

If you absolutely can’t pay down your loan even a little bit every time you get paid, then you are in seriously over your head, and you need some help. Fortunately, most states regulate the short term loan industry, and there are programs out there than can help you. Ask your payday lender. They may not be happy about it, but in most states, they have to tell you what your options are. Often, you can choose to pay back the loan over a period of several weeks or months. They might try to tell you that it will stop you from getting more payday loans in the future, but don’t let them kid you. For the interest they charge, they will lend you money again if you need it.

There’s Nothing Like Freedom

The best thing you can do once your payday loans are paid off is start paying yourself some of the money you have been paying them all this time. Start a savings account. Think about it. If you have put all that interest money you’ve been paying in a savings account over the past couple of years, you probably wouldn’t have needed to take out payday loans to begin with. Do yourself a favor. Once you get free, stay free.

Photo via jurvetson

Don’t be fooled by the interest rates that are advertised. Typical rates are between 9 and 14%, but that’s a straight rate paid back every time you pay the loan back. Without going into excruciating detail about how banks figure interest rates, a typical payday loan charges the equivalent of about 400% interest if you’re comparing apples to apples with a bank loan or credit card. So, before you stop in to that cash advance place, and sign up for a payday loan that will charge you exorbitant interest, look into these other options first:

• Negotiate with your creditors. We know, it can be a pain, but most creditors realize they can’t get blood out of a turnip. If you don’t have the money, or only have part of it, it is what is. In most states, there are laws that protect you as long as you are making some attempt to repay a debt.
• Use a credit card instead. Hopefully, if you have a credit card, this already occurred to you.
• Ask your employer for an advance. The worst he can say is no. And if he’ll do it, at least you won’t have interest to pay back.
• Apply for a traditional loan. It’s slower, and they might say no, but it’s worth trying. Some banks will even work with those with poor or no credit.
• Ask a relative or close friend for a loan. We know, it can be embarrassing and you don’t want to be a burden, but you’d do it for them, right?
• Borrow money from your savings, IRA, 401K or life insurance cash value.

In short, if you can avoid taking a payday loan, avoid it. And if you can’t, pay it back right away.

Photo via Stig Nygaard

Still, there are three major areas you need to look at if you’re considering taking out more than one payday loan:

Legal Issues

First of all, you need to consider the regulations that may exist in your state. Typically, there aren’t laws that restrict your ability to take out a loan. Instead, those laws have more to do with payday lenders. Some states may have caps on the amount that payday lenders can loan as well as a limit on the number of loans.

There usually aren’t laws that prevent you from getting a payday loan from one lender and then going to another payday lender for another loan. Now, we’re not suggesting for one moment that this is a good idea (it’s not, usually). We’re just suggesting that it isn’t a legal issue.

Lender Issues

The next area to consider is the lender’s policies. Some payday lenders will ask you if you already have a payday loan with another vendor. If you say that you do, they won’t loan to you. Not all lenders operate this way, but many do.

You don’t want to misrepresent your situation to the payday lender. If you do and if you wind up not making your payday loan payments, the lender can use the fact that you weren’t honest on your application in a civil suit against you.

Personal Issues

The real question is whether or not it’s a good idea to take a second (or third or fourth) payday loan. The fact is that payday loans come with severely high interest rates, and having more than one prolongs the time that it will take you to pay them off. You don’t want to run the risk of getting caught in the payday loan trap where you can’t pay off your loans and wind up getting more and more into debt.

Photo via stevendepolo

Overview of Overdraft Protection

A check, or a “draft” to your checking account usually must be paid from funds within your account. If you have $50 in the bank and you write a check for $100, that check will usually bounce.

With overdraft protection, the bank doesn’t bounce your check, however. They pay the difference – in this case, a difference of $50 – and then charge it to your account. You still have to pay the extra $50, of course, as well as a fee.

There are usually limits as to how much the bank will cover in overdraft protection. Usually it’s a matter of a few hundred dollars. Chances are pretty good, too, if you use your overdraft protection often enough, they may stop letting you use it.

How Much are Overdraft Fees?

That’s the real question. The fees involved in overdrafting a check are less than the combined fees you’d pay to the merchant and the bank together if you bounced a check. However, there’s still a fee.

Typically, the fee for an overdraft will be between $25 and $40, depending on your bank and where you live. Some states set limits on the amount that a bank can charge.

Is it worth it?

When compared to a payday loan, overdraft protection can make sense. If you borrow $400 with a $50 fee from the payday lender, you can just as easily write a check for $400 over your bank account and only pay a $25 fee. The key is making sure there is just a single overdraft. If you wind up with multiple charges, you’re talking about a significantly different situation.

Photo via laverrue

Why do we use APR?

Borrowing money can be confusing. Banks and payday lenders and other lenders will throw out a lot of numbers that may mean different things. The Truth in Lending Act was a federal act that, among other things, required lenders to quote the APR to someone who is considering taking out a loan. They did this, ostensibly, to reduce some of the confusion in the marketplace.

What is APR?

APR lets you look at the costs involved in a loan in terms of percentages. A $100 loan with a 10 percent APR will charge you $10 per year. Obviously, since that scenario doesn’t involve paying off any principle, it’s not exactly the best example, but you get the idea.

The limitation of APR

Unfortunately, there are limitations. Your APR may include more than just the interest on the loan. It might include things like processing fees or even mortgage insurance on a home loan. You need to look at the APR in detail so you know what is and what is not figured in for any given loan. You need to know what charges and expenses are involved in a loan. Beyond that, you need to get the big picture and look at how long you’ll have the loan to decide whether or not it’s worth it.

Calculating APR

If you need help figuring out the APR on a potential loan, ask the lender. They are required by federal law to provide you with the APR on a loan. If you want to calculate it on your own, there are a number of online services that can help you do exactly that, as well.

Photo via English106

Some people think that stopping payment on their payday loan check is a way to end the cycle. The payday loan company won’t be able to cash the check, and they’ll have to try to collect their money another way. While it will hurt your credit report, you justify stopping payment by telling yourself you’re going to save money in fees.

Here are some things you need to know about stopping payment on a check, before you decide to go this route:

• Stopping payment doesn’t cancel your contract to repay the loan. This is an important point. You will still owe the money, and the payday lender can come at you with civil action if you do not.
• You should notify your bank that you want to stop payment prior to the date on the check. Make sure you notify the bank both verbally and in writing.
• There will probably be a fee to stop payment. The fee is usually about the same as a bounced check fee. You’ll need to provide your bank with the check number, date it was written, who it was written to, and the amount of the check.
• The order to stop payment may only last six months. This can vary from one state to the next and from one bank to the next. You may be able to ask your bank to restore the funds and return the check if a check older than six months comes through, however.
• Check state laws. Some states may put you at legal risk if you stop payment on a payday loan check. Alabama and Alaska let the payday lender pursue criminal action if you don’t make good on the check and close your bank account. In Utah, the lender can sue you for damages if it cannot make good on the check.

Make sure you thoroughly consider your situation before you decide to stop payment on a payday loan (or any other) check.

Keep this pattern up and you’ll find yourself in big trouble. Those fees may not seem like much, but they add up and they add up fast.

Let’s say, for example, that you find a payday lender with relatively low rates. They might charge you $8 per $100 borrowed. Maybe you needed $225 to get your car fixed. The payday lender only gives loans in $100 amounts, so you borrow $300 and write a check for $324. You plan on taking the extra loan amount and setting it aside.

Well, of course, it doesn’t always work that way. It might be that you had another emergency crop up, or that you just decided to take that extra money and buy your girlfriend a nice dinner at that sushi place downtown.

Hope it was worth it, because now you’re hosed. Come payday, you may not have enough to cover the payday loan. Sure, you’ve got $80 that you can put toward it, but remember that the lender doesn’t loan amounts less than $100. So, you borrow $300 again, at another cost of $324.

One thing leads to another, and two weeks later you’re no better off. In fact, you decided to take in a concert, and wound up blowing $150 unplanned between your tickets and a couple of T-shirts.

Come payday, you don’t even have the $324. So, you take out a $400 loan, at a cost of $432 this time. Now you’ve paid a total of $80 in fees, in just a month and a half, and you’re no further ahead.

Avoiding this kind of payday loan mess isn’t always easy. Sometimes, it means borrowing less than you need. If your car repairs are $225, borrow $200 from the payday lender and get the other $25 from a friend or family member. Buckle down in between, so that you really can pay off your payday loan.

Photo via Steve Snodgrass

Still, there are those that claim payday loans are a valuable and necessary service. Traditional financial institutions typically aren’t willing to make small, short-term loans to people, especially when their credit is a little bit shaky. So, people turn to payday loans to fix their short-term financial needs.

How they work

A payday loan is a short-term loan. The lender provides you with cash today in exchange for a check dated into the future – typically two weeks. You provide the lender with some form of income verification. The amount that you get back in cash is less than the amount of the check you write, because the check includes the payday loan fees.

So, for example, you might take out a payday loan of $200. You write the check for $235, and it’s cashed in two weeks after you’ve been paid.

What’s wrong with this?

Unfortunately, the short term fix may have long term financial consequences. The terms on a payday loan are significantly worse that the terms on other types of credit. The annual percentage rate (APR) of a payday loan can reach up to 400 percent or more in some places, and is typically at least 250 percent. This puts payday loan interest rates somewhere between 10 and 40 times the rate of a more traditional type of credit.

Even that in itself isn’t always bad for the borrower. The problem comes when the borrower doesn’t have enough money in her account to cover the check that she wrote.

What the borrower then has to do is go back to the payday lender, who is usually willing to give them another loan – complete with another fee. As you can imagine, at a fee of $35 every two weeks the interest on that $200 can add up extremely fast. In fact, you’re looking at an interest rate over 450 percent.

The solution

The solution to payday loans isn’t to shut the businesses down, however. It’s to find other forms of short-term and low-value credit. Whether it’s micro loans, peer-to-peer lending or even borrowing money from your uncle Joe, there are a number of ways to avoid the payday loan jam.

Photo via chego101