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.
Picking the right payday loan can be the difference between paying a one time payment and an on going nightmare of charges and non stop headaches.
I know that sounds a bit drastic but it really is true. If you are in the market to take out a payday loan you must understand the differences between brick and mortar loan companies and how they do business.
Let’s take a look at the two and see how they work. Brick and mortar businesses
These companies follow state laws and are mostly set up as a payday advance. You borrow a set amount and they add a fee and an interest charge. When the check comes due they present it to your bank and collect their money.
If you use this type of company it is recommended you make sure you do not roll over this loan, and on the first due date it is paid in full, period!
If you follow this advice you will be out the high charges but the loan will be satisfied and that will be the end of it.