Why So Many People Turn To Payday Loans

If you’re like the millions of other Americans struggling to live paycheck to paycheck, your life probably goes something like this: You work for two weeks, get paid and spend most of your paycheck on your bills. Not much money is left over for the extras in life. And if you run into a car problem or some other financial issue between paychecks, you’re stuck footing the bill regardless of whether you can afford to pay for it at that time.

When that happens, some people choose to use a payday loan. A payday loan is an advanced, short-term loan to help you cover your expenses until you receive your next paycheck. However, many people run into trouble and cannot afford to pay it back as quickly as their next paycheck. Payday loans also have very high interest rates, which can make them even harder to pay back. This leaves people struggling to find an answer for the debt accrued by their payday loans. If you’re struggling through a similar situation, continue reading to find out how to use debt consolidation to eliminate your payday loan debt.

The pros and cons of payday loans

The poor economy has forced many people to use payday loans. Watch this video to see how they work.

Video: Are Payday Loans Worth It?

How to escape payday loan cycle

Carrying debt from a payday loan can cause you to feel hopeless, deflated and even desperate. The high interest rates force you deeper and deeper into debt. You continue to borrow money from a payday loan lender in order to pay off your last payday loan. Before you know it, you’re essentially just borrowing money to pay off debt. It’s the reason many states have banned them altogether (scroll down to see which states have banned payday loans). But all hope is not lost. Debt consolidation is a great way to pay down your payday loan debt without going broke. By working with a debt consolidation company, you can combine all your unsecured payday loan debt into one easy-to-manage debt balance. You’ll be able to lower your interest rate dramatically and avoid paying high fees on your debt. To start the consolidation process today, call the toll-free telephone number or fill out the form above. You’ll learn how to eliminate your payday loan debt quickly and save money at the same time.

How payday loans keep people trapped in a cycle

Recently, many people have applied for payday loans out of desperation. In this clip, you’ll see how many of the poor people living in America are trapped by payday loan debt.

Video: Katy Couric – Why Payday Loans Can Be a Trap

How to avoid payday loans

Many people use payday loans because they serve as a band-aid for poor financial planning. In order to avoid using them in the future, you need to learn how to budget your money properly, set a little money aside every month and spend your money wisely. By learning these skills, you should have enough money to survive every pay period and even a savings account for emergency situations.

States that have banned payday loans

Because payday loans are risky and force many people into debt, specific states have capped the annual interest rates on payday loans while others have banned them altogether to protect consumers. The following states no longer allow consumers to apply for payday loans:

  • Connecticut
  • Georgia
  • Maine
  • Maryland
  • Massachusetts
  • New Jersey
  • New York
  • New Mexico
  • North Carolina
  • Pennsylvania
  • Vermont
  • West Virginia