Can You Have Multiple Payday Loans?

Can You Have Multiple Payday Loans
The typical payday loan officer

The question that gets asked quite often involving payday loans is “Can I have multiple payday loans?” and the answer is not cut and dried by any means.

Before we get into the answer to that question lets first get a professional definition of Payday loans in the United States so we are all on the same page, then we can continue on to the complicated answer to the above question.

Let’s take a look at how these companies work and how easy it really is to get buried in payday loan debt, how they will let you take out loans even when they are illegal, and how to avoid getting caught in the payday loan trap.

How they work

You can technically have as many active accounts as these companies will let you have but that does not mean it is a smart thing or even a legal thing to be doing.

First off before you act on one of these accounts you must understand how they work.

There are two types of payday loan companies, the brick and mortar companies you see in your cities and towns, and the online companies.

Let’s go ahead and see what the similarities and differences are between these two companies because the differences can cost you huge amounts of money if you di not understand them!

Brick and mortar companies:

Payday Loan Company
Payday Loan Company

These companies are the ones you would visit in your city or town if you were to go take out a payday loan.

You would visit this store and apply for their services.

The average amount borrowed is usually around $500.00 and set up to be paid in full on your next payday.

You are required to have a checking account and a job that pays you at least $800.00 every two weeks.

You are basically borrowing a sum of money for an extremely high-interest rate compiled by the day. The usual cost for a $500.00 two week payday loan is a payback of $650.00, due on your next payday.

The company will let you post date a check for the full amount due on your next payday, and they will cash that check on the appropriate day, and the loan will be satisfied.

That is a cut and dry brick and mortar payday loan sequence, except………..

Yes, there are always catches, and this is where things can go really bad really fast for the borrower.

Catch one:

Say the check bounces, and you end up not covering this payback. Your payday loan will continue to grow by the day as your checking account gets charged every payday you do not have the check covered on, meaning they will keep hitting your bank with this check.

All this on top of your checking account being charged with overdraft charges every time something hits it while you try to recover and get the checking account back into a positive balance.

Catch two:

Say you were lucky and caught that your check would not clear so you went ahead and called the payday loan company and asked them what you should do.

They told you that they could offer you a rollover, or extend your loan until your next paycheck as long as you just pay the interest charge of $150.00

You now have a loan again due on your next payday in two weeks for $650.00 plus you just paid $150.00 for using their money the first two weeks.

In otherwords, if you pay the account off in full on your next payday you paid $300.00 to borrow $500.00 for a month!

Catch Three:

You decide you can not cover the loan payment when it is due, so you think maybe you could get another payday loan and use it to pay the first loan off.

You tell the second company that you do not have any open accounts and they are more than happy to give you a loan, thus you have just possibly broken the law in your state, as some states make it illegal to have two payday loans at one time and now you have two of these things to deal with on your next payday!

Welcome to the payday loan trap!

Online Loan Companies

Online payday Loan Companies
Online Payday Loan Companies

These companies share some similarities to the brick and mortar stores but they are also vastly different in how they collect their payments.

You still need a checking account and income of $800.00 or more every two weeks, but you can also use any account that allows these companies to both deposit and withdraw money.

You can get up to $1000.00 deposited into your account many times the same day. This is a huge draw for someone who is in need of fast cash, but it also creates a bad situation in that most borrowers do not pay close enough attention to the terms being explained once they hear instant cash.

It is like a block goes up once the customer finds out they can have the money within the day!

Catch one:

These companies will charge you the same $150.00 to borrow $500.00 for two weeks, with a payback of $650.00 due on your next payday BUT, they do not collect the total $650.00 unless you request them to do so within 3 days of the loan becoming due.

This was explained while the customer was daydreaming about how you would spend your cash later that day, completely missing this important fact of your loan.

We know because we have been there ourselves!

If you do not request this payment in full on the due date the loan company will hit your account for the $150.00 interest payment and reset your loan at the original $650.00 due again, on your next payday! This could go on for a very long time, and it usually does, on average 4 to 5 times an active account cycle!

This can lead to a person in a constant rollover of their payday loans costing them $150.00 every two weeks until they can finally if ever catch up with the payments!

Catch Two:

because online companies are so hard to regulate due to being based outside of the country they are active even in states that ban them, and they will let you have as many loans as you want to take out, leading to incredible payday loan debt.

Again, welcome to the payday loan trap!

Check this video out to see just how bad this kind of debt is becoming!


Either of these situations is a real problem for people in debt and they happen every single day.

The great news is we are here to help anyone and everyone who needs help with this kind of debt and everyone qualifies!

If you are in this situation now please call us toll-free at 1.877.280.5100 or CLICK HERE to fill out our FREE no-obligation form and we will help you get out of these messes and get you back on track with your finances.

We are simply the best consolidation company on the net and we treat your debt as if it were our own because we have been there and vow to never go there again. We will do what it takes to help you get this situation remedied!


4 thoughts on “Can You Have Multiple Payday Loans?”

  1. I don’t mean to disrespect you and you really do give perfect advice but one thing everyone that reads these comment should do is DO NOT get multiple payday loans

    I can understand how people get in that predicament as I have been in the same boat but getting another loan on top of what you already owe is going to be an uphill battle for you

    Try to pay off the first debt then think about the next one if you have to or even ask friends and family if they could help you out

    It’s websites like this that need to be read to get everyone to understand how it all works

    I loved reading this today so thanks for everything

    Would you really be able to help someone like me get out of debt?

    1. Hi, Matthew!

      Thanks for the compliments and yes, we sure do help people every day to eliminate this type of debt as painlessly as possible!

      We are happy to provide the service and we love the satisfaction of helping those in need!


  2. Payday loans used to be so much worse than what they are now, but these loans are still not a good option for borrowing money because people can still easily get into the trap you mentioned.

    I think it’s great that your company helps people consolidate this kind of debt.

    1. Hi Nate and thanks for stopping by and checking out the article!

      We love being able to help people and we will be here until these loans are no longer available because as long as they are around people will be needing help!


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