Consumer Tips: Payday Loans and Cash Advances

Before you get one of these loans, consider other ways to borrow money:

• Can I get a loan from a bank or credit union?
• Can I get more time to pay my bills by talking with creditors or a credit counselor?
• Do I have money saved that I can use?
• Can I borrow money from family or friends?
• Can I use a credit card instead?

Compare the costs, if you have more than one choice.  For each choice, find out:

• what is the APR?
• what are the fees?
• how soon must I repay the money?
• what happens if I cannot repay?

Write the answers to these questions.  Decide which choice is best for you.

• ask the lender to tell you how much it will cost in dollars
• ask the lender to tell you the APR
• borrow only what you can pay back with your next paycheck

Visit our Personal Finance InfoGuide for more money management resources