does lenders give these loan against some fixed assets?

Hahahahahahahaha. Why don't you save an emergency fund, just for emergencies and you won't have that problem. Don't spend more than you make. It's common sense. Payday Loan companies are a $ripoff and you have to pay them back plus interest. I don't finance anything and I certainly don't borrow money. It is possible to get an emergency fund together, all you have to do is get motivated. Sell some things, don't go out to eat, eat beans and rice, basically live like no one else. Put things into baby steps; Baby Step 1: Save $1,000 emergency fund. Baby Step 2: Become debt free. Baby Step 3: Fully funded emergency fund of 3-6 months of expenses. Baby Step 4: Invest in good growth mutual funds and Roth IRA's.

This isn't rocket science, only common sense. Regardless of what you make, this isn't impossible, nor did I say it would be easy. When you get these things accomplished, you will be living like no one else and feel great about it. Becoming rich is possible and can lead to a healthy lifestyle.

I would avoid these types of loans as if they were immediate death if you touched one of them. I can't say it any better than nathannw83 though. Fast money equals high interest. They are another trap...Regards, Robert

I took out one of these payday loans one time...HUGE mistake...I havn't taken a loan out since, Not even for my car...Like nathanw83 said...Start an emergency fund and keep adding to it...get a credit card and pay the balance off every month...DONT EVER SPEND MORE THAN YOU MAKE!!!!

Payday loans can be a great option for people if the debt matches the need. This is something that needs to be weighed up before making any decisions.

Is paying for the commodity you want/need to pay for right now worth more to you than having to pay interest over the next 4 - 6 weeks? Could you afford it at the time of your next payday?

If so, then yes, payday loan is a good option.

There's an analogy that I use that I think makes a lot of sense, and explains why you pay more interest for a small loan than you do for a large one...

You might spend $25 dollars on an 8km taxi ride from town to your front door, but then you could also pay just $30 for a 40km bus ride. You are willing to pay more for the taxi because of the convenience that is on offer.

Credit in the payday lending sector follows the economic trends for convenience.

I'll admit that yes there are some predatory lenders out there, but this just means you have to do your research before you dive head-first into debt.

Every company has different policies so it is best to check these out before you apply. What is there interest rate per week? (annual interest rate is irrelevant as your loan will not last that long) How do they work out how much you are eligible for - do they take into account your income/rent/mortgage payments? Is there an interest cut off period?
How many installments can you pay it back in?

I would have to say that it would be better to get down on your hands and knees and beg every family member/friend you have out ther before considering a payday loan. thats just my input on the subject.

Indeed, Payday Loans aren't for the unwise, but it's not like they're a ripoff. The high fees are there because payday loans are generally meant to provide fast cash in case of emergency, when you can't get access to your paycheck (hence the name). The high fees are there because institutional lenders don't lend on such short terms, and it's one of the few ways for the industry to make profit lending to borrowers that are likely to just let it roll over (no one wins if the loan is unpaid). There are alternatives, but having more options helps, especially for folks with poor credit.

Debts, arrears, defaults and missed repayments are the most commonly occurring factors that cause a lowering in the credit score of the borrower. The ultimate result of this is a bad credit history. If you need money when going through such a situation, the best way to cope up with your needs is to take up bad credit personal loans.

Sir, I respectfully, completely disagree. I recommend that you always have what I call a 'garhole' for emergency situations. A good 'garhole' contains at least 2000.00 dollars or more for any problem that may arise. It is never touched except for emergency use. Payday loans have high interest rates and are indeed habit forming.
Regards, Robert

These loans are against your future pay check.

They are very bad. Stay far far away from them!!! They interest rate on them is almost like that of a Loan Shark.

Payday loans are a rip off. If you really need cash that bad, ask your employer for a payroll advance. These are typically free.

In my younger years I had low paying crummy jobs and lots of debt but never once had to go to get a payday loan. With payday loans you will always be behind the 8 ball.

Do employers give payroll advances often? Are they easy to obtain? I never really looked into these.

Payday loans have their upside and downside like any other loan. They provide the cash that you need when you need it and in a timely manner. There are also fewer restrictions. The cash amount is generally small as well unlike personal loans. The fees can be quite high though because it is such a short term loan. Also if you miss your payment you can find that the fees get even steeper.

Just a rule of thumb when it comes to payday loans... ALWAYS make sure that you can live off of the money left over after you have paid off the loan. Otherwise you might have to take out another loan.

Well, ISN'T THAT THE POINT?

Keep making payday loan, after payday loan, after payday loan, then..... make another pay day loan until your outstanding loan is more than your next paycheck. Then borrow some more, perhaps you can make it up on volume!

A person can't get out of debt by borrowing money.

Don't get me wrong. I have nothing against the payday loan businesses.

But when a person pays $250 interest for a ONE WEEK $1,000 "loan" that's a little much.

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Gary Spicuzza, *SAFE
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*Self Appointed Financial Expert