Payday Loan Time Limit

BILL'S ANSWER

I do not know of any rule that limits the number of days between visits to a payday loan office. (Readers, if you know of such a rule please reply below.) If there is such a law, 90 days is a good start. I think an even better rule would be setting the minimum number of days between visits to a payday loan office at 9 million days.

Lest you think my vitriol is misplaced, check out the payday loan information from the Consumer Federation of America where you will be able to read all about these loans and the various state attempts to regulate them. Follow the "state information" link to find out the specific regulations for payday lenders in your state. Bills.com offers a wealth of information about payday loans on our Payday Loan Information page.

I have written many times in the past about how bad payday loans are. The rates range from 390% to 780% APR. depending on the number of times the principal is rolled over. Remember that these are illegal in some states! Payday loans become traps for many hardworking people, who instead of being helped by payday loans actually find themselves in even worse financial situations than they were before they darkened a payday loan office's door.

Do yourself a favor and promise yourself to never get a payday loan again. Instead, consider approaching those who are close, trusted people in your life (friends, family, neighbors, maybe your employer) and ask to borrow the funds required to pay off your payday loans, while simultaneously looking for any possibilities for additional or overtime work.

Keep in mind that credit union loans, paycheck cash advances from employers, cash advances from credit cards, emergency community assistance plans, and direct loans from family or friends -- are typically better financial options than a payday loan. The Federal Trade Commission also has a great Web page regarding payday loan alternatives.

One slightly light-hearted fact regarding payday loans: Wikipedia.org, the leading online encyclopedia, list payday lending under Loan Shark, stating that "if the defining characteristics of loan sharking are high interest rates and a credit product that traps debtors, then the label certainly applies."

Finally, consider why you were even looking at a payday loan. Review your spending. Find ways to control your out-flow. Put a priority on your expenses. Shelter, food, and clothing are vital, and any other spending should be curtailed. Make saving (not spending) money your No. 1 priority, by setting aside a small amount in an interest-bearing savings account with every paycheck. If you save a little every payday, when an emergency or unexpected expense comes along you will have the savings in place to handle it without even thinking about a payday loan.

Bills.com also offers more information on the Payday Loan Information page, and has answered reader questions about payday loans in California, Florida, Illinois, Massachusetts, Missouri, Texas, and Virginia.

If you do not repay a payday loan, the payday loan company has several legal remedies, including wage garnishment, levy, and lien. See the Bills.com resource Collections Advice to learn more about the rights of creditors and debtors.

I hope this information helps you Find. Learn & Save.

Best,

Bill

www.bills.com/