Payday loan to pay for daughter’s college?

Q: I was thinking about taking out a small no credit check payday loan to cover a few bills this month. I switched jobs and had about a 2 week period of no paycheck coming in. Now, I am little behind on a few things. I am only slightly behind and I am afraid to get really behind to the point of my utilities, cell phone, or internet service being cut off. So, I guess my question is:


I was wondering if you think this is a wise decision or should I just try and make payment arrangements with my billing companies?


Waiting of Advice

Atlanta, Ga

A: Well, Waiting, the ultimate decision is going to have to be up to you. No one knows you and your financial status better than you do. However, there are some things you should know before you make your decision.


#1 – No credit check payday loans are prohibited in your state. Georgia has legislation set in place making it illegal for payday loan companies from operating in the state. Therefore, if you decide to take out a payday loan, you are going to be subjected to online services only.


#2 – Dealing with online no credit check payday loan companies means you could be charged four digit Annual Percentage Rates (APRs) on any loan you take out with the lender. This is because many of these online payday lenders are using loopholes to be able to offer you the loan in the first place, such as operating outside of the United States. This makes them immune to current payday lending legislation in any state.


#3 – Once you take out one of these unregulated no credit check payday loans, you have to read all the paperwork very carefully because they are notorious for hiding fees and repayment terms, such as $150 dollar loan extension fee or automatic bank account debit for the full loan upon any messed payment.


If at all possible, many people fair better financially in the long run if they can borrow a regular loan from their personal bank or activate an overdraft protection for a few hundred dollars or ask a friend or family member for a small loan to cover bills. However, as mentioned earlier, you are the final say as to whether a no credit check payday loan is right for you and your current financial state. Just one last thing, never take out a payday loan if you are not certain your following paycheck or two will cover the entire loan amount.

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