Anonymous
Anonymous asked in Business & FinancePersonal Finance · 1 decade ago

Is it wise to take out several payday loans at once?

I will be able to pay them all back within three weeks max. I just don't have the time to wait the week or two for a larger loan to be processed.

9 Answers

Relevance
  • 1 decade ago
    Favorite Answer

    doheja07, Try calling a friend or family member first. If you don't have that option, I've heard good things about this site. http://www.howtogetcashadvance.com/Instant-Payday-...

    • Login to reply the answers
  • 1 decade ago

    It isn't wise to take out one payday loan, let alone multiple ones.

    It's not the amount you should be worried about. It is relatively easy to pay back an amount of money. You should be losing sleep over the exorbitant interest they are about to charge you. That could amount to double the amount you originally borrowed, so be very, very careful.

    If something happens in the next few weeks, like you lose your job, your car breaks down, or you get sick and can't work, then you're screwed. And you'll have those horrible payday loans hanging over your head, growing until they are at such a massive amount you cannot afford to repay them. That's when life will get very unpleasant.

    Get a legitimate loan. Bugger the wait. It won't hurt you, and in fact, it might save you a fortune down the track. Go to a loan broker, a legitimate one, or a bank, and see what they offer in fast tracked loans.

    Best wishes

    • Login to reply the answers
  • 1 decade ago

    When you take out a pay day loan from a legitimate lender, your limit is set (usually to 25% of your monthly income) at that time. That limit is based on proven and common sense reasons for making certain that you are not loaning beyond your means.

    If you take that amount out at one lender then go to another lender and take it out again, then you have personally, by your own choice, loaned beyond the reasonable means to pay the loan(s) back.

    Don't blame the lender(s) for the consequences of your own choices. Unfortunately, that seems to be the trend,... to blame someone else for our own choices.

    You should never carry payday loans from more than one pay day lender at a time. They do not have a magical system by which to know if you already have a loan out with another lender.

    If you are over your head with a legitimate lender (most of them are CFSA members), then there are easy, no additional fee, payment plans by which you can pay your loans off.

    By the way, legitimate lenders, by CFSA rules and regs, will not/can not, practice intimidating or unfair collections, nor can they take you to court. It is in their agreement of honor with you, and their choice of risk, that it is your honorable agreement to pay back the loan that they gave you. The APR that you are quoted is required by government, and it truly is not the reality on a short term payday loan, since what it really is, is a fat fee (like $15 on a $100 loan), plus a one time return check fee (maybe $25) if your check returned for insufficient funds. THERE IS NO INTEREST.

    That is cheap, and pretty reasonable to negotiate with, compared to the fees, penalties and interest of traditional banks.

    Check into the fees (usually 4% up front), interest (usually 20% daily) and into the way that credit card companies manage and schedule cash advances (usually at the bottom of the billing list so that it is the last bill to be paid) if you want to see phenominal percentage rates, and a "trap" that is very difficult to get out of.

    • Login to reply the answers
  • Anonymous
    1 decade ago

    Do not take out several pay day loans at once.

    Read the article below. it is right on the facts!

    When you take out a pay day loan from a legitimate lender, your limit is set (usually to 25% of your monthly income) at that time. That limit is based on proven and common sense reasons for making certain that you are not loaning beyond your means.

    If you take that amount out at one lender then go to another lender and take it out again, then you have personally, by your own choice, loaned beyond the reasonable means to pay the loan(s) back.

    Don't blame the lender(s) for the consequences of your own choices. Unfortunately, that seems to be the trend,... to blame someone else for our own choices.

    You should never carry payday loans from more than one pay day lender at a time. They do not have a magical system by which to know if you already have a loan out with another lender.

    If you are over your head with a legitimate lender (most of them are CFSA members), then there are easy, no additional fee, payment plans by which you can pay your loans off.

    By the way, legitimate lenders, by CFSA rules and regs, will not/can not, practice intimidating or unfair collections, nor can they take you to court. It is in their agreement of honor with you, and their choice of risk, that it is your honorable agreement to pay back the loan that they gave you. The APR that you are quoted is required by government, and it truly is not the reality on a short term payday loan, since what it really is, is a fat fee (like $15 on a $100 loan), plus a one time return check fee (maybe $25) if your check returned for insufficient funds. THERE IS NO INTEREST.

    That is cheap, and pretty reasonable to negotiate with, compared to the fees, penalties and interest of traditional banks.

    Check into the fees (usually 4% up front), interest (usually 20% daily) and into the way that credit card companies manage and schedule cash advances (usually at the bottom of the billing list so that it is the last bill to be paid) if you want to see phenominal percentage rates, and a "trap" that is very difficult to get out of.

    • Login to reply the answers
  • How do you think about the answers? You can sign in to vote the answer.
  • 1 decade ago

    NO. It is NOT wise to take out ONE payday loan, and several is suicidal, but doubtful they would let you do so. Find another solution, this is crazy and shows a pattern of poor financial decision-making.

    Source(s): tax pro
    • Login to reply the answers
  • 1 decade ago

    No. Right now it is wise not to borrow money at all unless you absolutely have to. If you can try to save up what you can or wait until you can take out only one. Currently people are scared about money and when they are debt collection really gets ugly. You may be able to pay it back soon but life happens sometimes. I wouldn't risk it if I could.

    • Login to reply the answers
  • 1 decade ago

    I wouldn't suggest it. They are legalized loan sharks. The amount of mark up you have to pay back is insane. I would try and do something else if you could. Ask a family member- but give an extra bit to thank them.

    • Login to reply the answers
  • 1 decade ago

    It is not wise to get payday loans at all.

    They are about the worse way to borrow money.

    • Login to reply the answers
  • 1 decade ago

    GOOD GOD NO DONT DO IT.

    • Login to reply the answers
Still have questions? Get your answers by asking now.