By Shawn Martin
Because furloughed employees are receiving no pay for their time off, they may have to resort to unconventional means to acquire enough money to keep their families functioning.
For many with boarder line credit of already having borrowed too much, the choices are narrow, mainly payday loans.
See how we deal with payday loan debt!
Will they get paid?
While most workers will receive back pay for the time off, this does little to buy food and pay the mortgage during the shutdown, and if this continues for too long many employees are going to run into some serious financial risks.
Payday loans are illegal in 15 states already, but this does little to keep them from doing business in a banned state, and they stay plenty busy.
As you can see by the chart, this path is the proper way to pay back a payday loan.
Even though the end result is usually little to no monies left for other bills, it is only one pay cycle and it will pass.
The payday loan trap!
The biggest thing you want to avoid, especially with the temptation to get money overnight or even the same day, is borrow more than you can pay back in one pay cycle.
The very last defense you have is not extending your loan and just paying the interest. This is the payday loan trap and it can grow a life of its own in no time at all.
There are other ways to get help, and we here at Help Payday Loan Debt recommend you exhaust all options before using these companies. Many credit unions are offering furlough loans, and letting existing customers skip a payment to help take the pressure off until the Government gets going again.
Check with your banks, credit unions and in your communities to find help and if you end up using these payday loan companies, please use them wisely and satisfy that loan on the first pay cycle.
If you do get trapped in the payday loan trap we will be here to help you. Call us at 1-877-280-5100 or fill out our form for a free no obligation quote to find out how we can help you find peace in your finances.
Return to the top of this page