obviously monty...if I had some savings why would I opt for a payday loan?

sabastian... have you thought about saving up some emergency funds so that you don't get yourself in this situation? You could easily use the $63 to help set up these emergency funds.

Just a quick suggestion

I took out my payday loans a few years ago . each time had an emergency, and had to take take out a loan for 300$ ). In two weeks, I had to repay the loan plus $63. Needless to say, it cost me so much money but that helped me to finally dig myself out.

hey sebastian...
how much extra are you paying for that service? especially if you pay them off in the two weeks?

honestly i had used the payday loans two times and pay them off within the 2 week period..they are just good for the ocassional use..

Richard, I've used payday loans in the past and not one has offered anything in the way of assessment/budgeting. It's a complete, no credit check process, whether you do it through their online application or through the storefront.

The problem I find is people that live paycheque to paycheque haven’t got the discipline to manage their cash flow and save money for an emergency.

Having access to payday loans can create a deeper cycle of indebtedness to these same folks that lack proper spending habits. I mean if you can’t afford your lifestyle today, why is borrowing more money against a paycheque a smart financial move? Especially when the cost is so high? Does anyone know if payday loan companies offer any kind of assessment/budgeting of cashflow to ensure the borrower has some financial stability or is it just an easy “sign here” and off you go…

I had a guy in recently who presented about $3k in various payday loan debts and another $15k in credit cards with about $26k in annual income, zero savings, and paychecheque to paycheque and nothing to his name... Truly an insolvent case... Sent him home to pick up his yellow pages to find a Trustee.

hmmm.... logically... if you're living paycheque to paycheque, then you're probably at much higher risk for defaulting on a loan.

You're right, the people you service are high risk clients, are probably not going to qualify for a credit card. Doesn't that tell you something..

I guess payday loans serve a purpose... Obviously otherwise you wouldn't be in business for as long as you are.

It's good to talk about these things on the site, so hopefully people will learn about their options.

Everyone knows that you should not spend more than you earn. The guy in the video says that you should get a small limit credit card instead of going to a payday loan store, but what if you do not qualify for one? Let's say you live paycheque to paycheque for some reasons (whether you overspend or do not manage you finances properly) you missed some days of work and short $200 on you rent and have no where to go to borrow $200. Is it better to get an eviction notice or get a payday loan? People should use payday loans responsively and if you decide to take a payday loan and are able to pay it back on your next payday, than I do not think it is a big deal.

I found this video on youtube.
It talks about the pitfalls of payday loans.