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While I don’t deny that there are legitimate and true emergencies that could cause a person to NEED a payday loan, I would still tell them to beg, borrow and scrape every way possible to get help somewhere else before jumping into the black hole known as “payday loans” or “payroll cash advances”.

Payday loans are typically a small loan where you give them a post-dated check to repay the loan. If you are unable to repay the principle, you are “loaned” the money again for another pay period with renewed fees and interest. This is known as “flipping”.

A lot of people get into a vicious cycle where they have to take to payday loan just to pay the previous loan, plus a new loan amount to get them by because they are now short on money again. Pretty soon, their entire paycheck is gone before they ever get it.

Payday lenders raked in about 4.2 billion a year by charging 300-1000%+ interest. The average person flips the loan over and over (taking out a loan to pay the previous loan) five times.

While every single person who ever used payday loans will say they are the exception, the reality is that payday loans satisfy the need for instant gratification, are usually accompanied (or made necessary) by other impulsive habits, and are almost always a symptom of a lack of financial discipline. Payday loans are a ridiculous waste of money.

If you are TRULY in dire straits, turn to friends, family and Christians for help. If you are serious about getting your financial house in order, people will help. If you just want rescued so you can return to poor spending habits, then people will be less likely to invest in your life. [TIPJAR]

If you are simply undisciplined with your money, ignorant about how to handle money, or clueless on how to go about getting out of debt and managing your personal finances, there are plenty of people and resources to teach you how. Learn how to budget, learn how to pay off debt, learn how to avoid impulse spending, learn to recognize credit traps.

Payday loans, credit cards, monthly payment plans… calling all suckers. You will be a SLAVE to the people who offer these things if you do not make the disciplined choice to avoid them.

Learn how to get out of debt, stay out of debt, and have the right attitude about money before applying for online money loans. If you don’t know where to start, my book, “Life Without Debt” is a good place. If you buy the current version, I’ll give you the upcoming new edition free. Just remind me when it comes out.