Ours is a sick world. There are people out there just waiting to take advantage of you when you’re in the worst possible shape. These people are the worst kind of scum, with no moral compass and very little in the way of real humanity.

One of the times you’re most vulnerable is when you’re in need of a payday loan. Generally speaking, you’re not in the best financial condition when you’re taking out a payday loan. You are in danger of being taken advantage of or even outright deceived when you’re desperate for cash.

Internet payday loans are especially dangerous. Yes, there are legitimate payday lenders online, and they’re definitely worth checking out when you need the cash and can’t get it somewhere else. But there are some important things that you need to be watching for, including:

• Privacy and security. To be able to apply for an Internet payday loan, you’re sending the company your personal information. Usually this will include personally identifying information like your Social Security number and/or driver’s license number, as well as your bank’s account number and routing number. In some cases, you’re sending these over unsecure links.
• Identity theft and fraud. When you’re disclosing personal information and opening your privacy like that, you’re exposing yourself to both fraud and identity theft.
• The debt trap. Like traditional payday loans, online payday loans can put you into a debt trap. You wind up being unable to pay off the first payday loan, so you either renew it or take another one out. Before you know it, you’ve spent several times the amount you originally borrowed just in fees. While this isn’t illegal, it certainly isn’t a good idea.

So, what do you do? How do you protect yourself from these dangers? You start by checking out the lender before you do any business. Check for online reviews, but also check for personal recommendations. In many cases, you’re better off borrowing from a friend or family member, and if that’s just not possible you might consider sticking with a traditional brick and mortar payday lender.

Photo via mandyxclear