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Consumer Tips: Payday Loans and Cash Advances

What should I do before I get a payday loan or a cash advance loan?

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?

How do I choose which way to borrow money?

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.

I decided to get a payday loan. What should I do?

  • 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

Personal Finance

Visit our Personal Finance InfoGuide for more money management resources