Alabama payday loans: Are They Safe?

Alabama payday loansThe real question that needs to be asked is not about Alabama payday loans but about all payday loans. Are any of them safe?

Well, that is an interesting question and one we will address along with what the Alabamas laws are and how they affect the borrowers.

Let’s first start off by reading our article on How To Use Payday Loans

Once we know how to use them properly we can take a look at the state of Alabama and how they regulate them!

[ Click here to find help with out of control payday loan debt in any state!]

Alabama Payday Loan Laws

This state has a little over 1000 payday lenders in the state and the brick and mortar (in person) loans are legal.

Online loans are also legal in this state but they have a whole different risk factor and we recommend reading up on how they work before you take any online loans out!

You can read up on these types of loans here: Are Online Payday Loans Safe?

There following lending rules in this state  must be followed by the lenders and the borrowers:

  • $500.00 Maximum Loan Per Borrower
  • 10 to 30-day loans only
  • Only allowed 1 Roll Over Of Loan
  • Interest Rates = APR of 456.25%
  • Service fee does not exceed 17.50%
  • Must Pay Off Two Compete Loans Before The Waiting Period Between Loans Is Waved
  • Can not exceed a $30.00 limit on NSF Check Collections

This state does regulate their payday lenders better than most other states while this is refreshing there are still too many pitfalls to get yourself stuck in a payday loan trap!

Are They Safe?

SafeWhile no payday loans are ever really safe because they are the highest risk form of loan out there this state does make them a bit safer than most.

If you follow the following three rules we set forth about using payday loans you will be able to use them safely.

  1. Never take out more than you need
  2. Never take out more than you can pay back on the first due date
  3. Always pay off the loan in full on the due date

Keep in mind you will be paying a huge amount of interest for a very short-term loan but when money is tight and an emergency shows it’s ugly head a payday loan can be the only option!


We have covered the laws of the state of Alabama and we have also covered how to use a payday loan safely.

While we do not encourage using these lenders we feel it is imperative to be here and be informative in helping people stay safe and have someplace to turn to should things go south, and they can very quickly!

We hope this information helps you in deciding if this type of loan is what you are looking for.

We want to hear from you!

If you have any questions or stories to share please leave a comment below and we will get back to you as soon as possible!

Thanks for stopping by and happy lending!

[ Click here to find help with out of control payday loan debt in any state!]

10 thoughts on “Alabama payday loans: Are They Safe?”

  1. Alabama Payday Loans definitely are not a safe financial product. I’ve only just recently really began focusing on my own personal finances and by accounting for my debt interest expenses and debt fees, I’ve realized that so much of my net wealth is pouring into these unnecessary expenses.

    I could completely see how Alabama payday loans would drastically increase my net expenses towards these, padding not my own net wealth, but the wealth of these payday loan businesses.

    I would steer clear of any form of incurring payday loan debt.

    Thank you for this great information!

    1. Hi!

      Boy, you hit the nail right on the head with the statement “so much of my net wealth is pouring into these unnecessary expenses”

      If people really slowed themselves down and took a look at their cash flow they would be amazed at where the money goes.

      So glad you have turned a corner and are now on an awesome path to financial stability!


  2. Shawn, I am glad to see you are getting the word out, about how much these payday loans can get a person in debt!
    The sad thing is that a lot of young people get caught in this trap, no realizing how much interest they are paying and how fast it all adds up.
    A person needs to really do their homework before they take out one of these loans. It sounds as if your Loan Consolidation Company is trying to help and I would encourage anyone to check into it.
    Good information. Hope to talk soon.

    1. Hi, Wayne!

      All good points and thanks for stopping by and checking out the website!

      We are trying to educate people as we go but the list seems to be endless!

      One step at a time I guess. Please feel free to share our website around, we love helping people!


  3. I just entered a comment and I am really glad that you put that review together. Lenders out there are the real wolves in sheep’s skin. They lure you into something awful if you do not know exactly what to expect.
    I went for a loan through my bank instead and i have he freedom to choose the payments I want. Thank you so much, Shawn.

    1. Hi, Edmund!

      We always preach using less risky ways to borrow money and I am glad you found a safe way to do that!

      We try to teach exactly that with all of our clients so they leave us with the knowledge they need to stay away from the Payday Loan Trap!

      Thanks for stropping by and sharing!


  4. Thank you so much for this review. I was thinking to get a loan from them some time ago but I was hesitant and never followed through. Their ads are so tricky and luring that one may end up into something of a disaster not knowing what they are actually signing up for.

    It is ridiculous how they entrap you into these schemes. You go to them for help with a loan but then instead of having a relief of your current debt, they do more damage. I went ahead and took a loan from my bank instead. Though the interest was is a little high, they are very flexible in the payments and allows for scheduling your own payments. To me, that is a relief.

    They should be a last resort when all is said and done. Thank you so much for the in-depth info on these lenders. It is really great and I find it very helping that you took the time to do this to educate the public. Good work.
    Thank you, Shawn!

    1. Hi, Edmond!
      Thanks for stopping by and I am glad you chose to go with the4 bank loan!
      It is a constant battle staying ahead of payday loan debt and I am glad you have not had to deal with it!
      Thanks for sharing your story!


  5. Thank you for this and the other informative articles. I have never taken out a payday loan and I never will. I have found that in a real emergency, such as a medical emergency, the doctors and hospitals typically understand that you may not be able to pay the whole amount immediately, and they will work with you to spread payments out affordably. I once looked into one of these “quickie” loan offers for $1,250 that I got in the mail because it sounded like just like what needed at the time. However, when I called the phone number to get further information about the loan, the service representative tried to dodge my question about interest and fees. I later read some reviews of this particular loan company and I read where people who had been suckered in and taken the $1,250 loan money ended up paying back $4,000-$5,000 in interest and fees. But here’s the kicker: the loan terms stipulated that it had to be paid back over a period of time–months—NOT with your next paycheck–thus insuring that interest and fees would add up, and add up, and add up….. No, I will not ever allow myself to be part of the “80% club”.

    1. Hey Paul!

      Thanks for stopping by and checking out the website!I can relate to your story oh so well as we hear them every day around here!

      Wise choice to never have fallen into the trap. 

      If you know anyone who may need our services please send them our way. We would be more than happy to help them out!


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