Safe Payday Loans-The Facts


safe payday loansWe have been asked over and over if there are any safe payday loans. We will cover this question and also offer some pretty interesting payday loan statistics and facts in this post.

There are differences in payday loans and believe it or not there are safe payday loans, but you must understand what makes them safe and which ones out there are not safe.

As with any financial adventure, even the best of intentions can result in any of these types of loans, or any other types for that matter can become unsafe in a hurry and we will address that a bit later in this post.

Payday loan debt trouble?

See our recommendation!


Before we get into the facts and statistics lets review what a payday loan is.

Payday loans are high-interest short-term loans and this alone makes them a risk to anyone who may take a loan out.

They become more of a risk when you figure in the majority of borrowers have bad or no credit and low income.

Add on the risks of rollovers and multiple loans and you end up with a very dangerous way to borrow money.

Here is a link to Wikipedia for their definition of a payday loan

Definition of a payday loan

Troubling Statistics

The average estimated income of a single payday loan store per month is around 25k. This represents a profit margin on investment of around 805% for the owners.

This is a pretty good return for the store owners money.

Unfortunately, most of this profit is on the backs of people who can not afford to contribute to this in the first place.

Here is a very interesting fact. Most payday loan customers will pay an average of $574.00 in fees and interest on any one single loan that has been taken out.

A few more facts:

  • 33% of borrowers make around $30,000 a year
  • 20% of borrowers make under $20,000 a year
  • 65% of borrowers will get one or more overdraft related to the collection of payday loan payments.
  • The average borrower will be in debt for 7 months per calendar year due to these loans
  • 80% of payday loans are rolled over
  • The average borrower will roll over a payday loan 6 times before it is paid off
  • Only about half of all payday loan users are able to pay off a payday loan in full on the first due date. (Safest way to use payday loans)

As you can see the cards are stacked against the payday loan borrowers unless they follow strict payback rules and do not extend a payday loan for any reason.

Safe Payday Loans

We all end up in situations in life where we must come up with emergency money for various reasons.

A new TV or the latest cell phone are not reasons to take out a payday loan.

The only time a person should even consider one of these loans is if it is a life or death situation. I know this sounds drastic but it really is true.

A broken car that gets you to work, medicine for the borrower or immediate family member are valid reasons to risk a short-term high-interest payday loan. These kinds of emergencies do come up and must be addressed, but please do your best to find alternative ways to raise the money.

If all else fails and you must take out one of these loans be informed and have a plan.

You can use payday loans safely and we will explain how to do that.

Your one and only plan should be:

  • Paying back the loan in full on the first due date, PERIOD!
  • NEVER extend a payday loan
  • NEVER take out more than one payday loan at the same time

These rules must be followed to safely use a payday loan, without exception. You will pay a high-interest rate but when you make the payment the loan is satisfied and no more fees or interest can come back to haunt you.

A note about online payday loans.

These loans can be used safely by following the above rules but they are set up with a unique payback system that is geared to cost the borrower dearly if they do not follow the payback rules to the letter, so understand what the companies rules are and follow them. READTHE FINE PRINT!


These companies do offer help for those who can not find it elsewhere, but there are rules to follow to avoid getting caught in the payday loan trap.

If you follow the above plan you can use these loans safely and they will not become your worst enemy.

We hope this article helps you in your future endeavours in the payday loan world.
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29 thoughts on “Safe Payday Loans-The Facts”

  1. Being in debt and trying to manage unwanted loans is indeed a soul destroyer.

    The problem is these days it can be easy to get into debt even if you are being careful.

    These pay day loans are indeed a danger and wanted to thank you for the information here to help us all out!


    1. Hi, Chris!

      It does seem everyone is out to get yoiur money and most have no concious whatsoever in taking advantage of another.

      That is why we are here, to even the playing field for those who need help.

      Thanks for stopping by and plase spread the word that we are here!


  2. It’s nice that payday loans have been outlawed in some states. I think it’s an unfortunate business for some consumers… a vicious cycle really. If you don’t have enough money to make it through without a payday loan, what makes you think you’ll have enough money to make it through AFTER paying the loan? It’s like credit card debt, only worse. I’m not sure how it became the American way, but folks are definitely getting less bang for their bucks with all this debt.

    1. Hi, Renee!

      I agree, they are not getting any bang for their buck at all, they are giving it away and that is why we tray to teach everyone that will listen why they should stay away from these types of loans.

      Thanks for stopping by!


  3. Really nice, you really know your stuff, I checked your page and its looking good, also your site and I willl be coming back, to see your latest posts, keep up the good work and remember that the content is the best you can make for people to find your website just like I did.

  4. Really nice, you really know your stuff, I checked your page and its looking good, also your site and I willl be coming back, to see your latest posts, keep up the good work and remember that the content is the best you can make for people to find your website just like I did.

    1. Thanks for stopping by!

      I am happy you like the site and please share us on your social networks so we can reach the people that need help 🙂


  5. I never realized that payday loan offices earn over 800% on the money they loan out. I wish I could make 800% on my money. And to think savings accounts don’t even pay 5% a year!

    Back in the day, this kind of interest was called loan sharking. It was illegal then. When did the law change?

    Thanks for suggesting some responsible alternative loan sources.

    1. Hi!

      Many things have changed in the last few years, and not all to the good I might add.

      Loan sharks are about the same as these companies, and still people will use them!


  6. Hey Shawn, very informative and helpful article on what is perhaps one of the most troubling and common forms of debt. I can only imagine those who have to resort to these short term loans are in such dire situations that they have to take up such risk. And the fact that they often do not earn enough to pay back in full on the first due date makes it more troubling. Thanks for sharing this information!

    1. Hi, Gin!

      You would be amazed at how many people who DO make more than enough money end up in trouble with these loans. Many are feeding an addiction or trying to hide another side of their lives and it all backfires on them.

      I am here to help them all 🙂


  7. These types of loans really worry me – espeically with the amount of coverage and warnings they get these days. Have you heard about the people that are sunk completely with payday options? Sounds horrible and frightening doesn’t it? It’s nice to see that someone has set up a website dedicated to handling this problem ( at last! )

    1. Hi, Chris!

      Yes, I see it daily and at all levels. We can help them all and everyone qualifies!

      They are scarey and downright dangerous if you do not follow the rules to the letter.

      Thanks for stopping by and please help spread the word that we are here.


  8. I am one of those that has been caught between a rock and hard place. Unfortunately, I learned the hard way that you need to read each page and all the fine print! LOL. Luckily, it wasn’t difficult to recover; but it would have been nice to have this site back then! Payday loans are not to be taken lightly, and one should know the facts. Great site, and thanks for very helpful information!

    1. Hi Neva!

      I agree that you must read all of the fine print or you will end up paying dearly. I too have been taken for a ride with these loans a while back and vowed that i would help people from that point on!

      Please help spread the word that we are here both to inform and to help anyone with payday loan debt. We will accept anyone who needs help, and we can get things going usually in the same day.

      Thanks so much for stopping by and I am glad you are one of the survivors!


  9. Shawn,

    Your site is very informative. i can see that you are very passionate about this topic. There is not such thing as quick and easy money and I appreciate you making people aware of the dangers of these kinds of loans. Are there other ways that you might recommend generating money when you find yourself in between a rock and a hard space?


    1. Hi, Dan!

      There are options for people who can not get a regular loan. Many credit unions are running new programs that will help people with less than sterling credit get back on their feet. There are also some of the major banks in the country now offering installment loans for people who have damaged credit.

      Thanks so much for stopping by!


  10. Hey, Shawn

    I know in the UK that there are some payday loan sites that just can not be trusted and put unnecessary pressures on borrowers.

    I have considered payday loans in the past, but considering the dangers I could face if things spiralled out of control, I have stay clear of them.

    Your facts and tips on these types of loans are very much appreciated, and I will bare this website in mind for anyone I know who is struggling with their debts.



    1. Hi, Neil!

      Thanks for stopping by and yes, there are nasty ones in the UK also.

      The horror stories I have heard from that side of the ocean have been pretty sad

      Thanks for keeping us in mind for future reference!


  11. Great post on the dangers of payday loans. I myself used payday loans before and all that happened is once I got my salary and paid back the loan I had to take another one out to make my monthly expenses. Of course each time I had to take out a higher loan amount to cover the interest I paid, it was a bad cycle in my life.
    Any sort of debt is bad, you get trapped and find it hard to dig your way out of it.
    I suggest anyone that is tempted to take out any sort of loan to rather stick to paying cash only. I know hard it is to get by but I also know it is even worse when you cannot pay your debt or your normal monthly expenses. It is a horrible feeling in the pit of your stomach, a worry that doesn’t go away.
    Thankfully I am now out of that situation and I will make sure I am never there again!

  12. I read your article about payday loans. In fact many people have talked about Payday loans and all of them I should say speak the real truth. Payday loans is something that I would like to stay away from. There is nothing more that I want to discuss about this. Everything that you have mentioned in your article is worth reading.

    1. Hi there!

      Thanks for stopping by and yes, they can really be a bad deal if you let them get out of hand.

      You are wise to stay away from them!


  13. Great article. I’ve always heard that Payday loans were dangerous, but your statistics really painted a very clear picture of what happens when people fall prey to the Payday loan trap.

    The rules you outline make sense and look like they would be very helpful if you find yourself in a bind and in need of a Payday loan.

    Thanks for the post. I can see it being helpful to a lot of people that are stuck between a rock and a hard spot.

    1. Hi, Liz!

      We are trying to educate as many people as we can, thanks so much for stopping by and help spread the word!


  14. Anoher great post for people to understand how to get rid of their pay day loans. Thanks for the post. Everybody wants to know the best option when I comes to something like this. The safes option is what everyone needs. Great job with bullet points and pictures. This really helped me the reader understand where you were going with your article.

    1. Hi, Chris!

      Thanbks for stopping by!

      I agree, there are safe ways to use these loans and it is nice to know how to do that, but you still must use extreme caution and fllow the plan!


  15. Oh man I have seen a lot of these commercials and am glad that I do not have to use one of these. At least for right now. I hope I never have too. Anywho, this site was very inmformative in the steps I need to take in paying something like this off. A lot of people could benefit from this site. I liked all of the charts and believe they are very important but another picture or video explaining the payment would be a nice touch.

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