Question: Anyone ever try one of these?

If squeezed for cash, they allow you to borrow for example $200 deposited into your checking account and they deduct that $200 plus $16 fee the next payday?

www.staradvance.com is one and there are others.

Would be curious as to experiences anyone has had with this service.

Thanks!

Answer: Avoid those places like the plague. You’d be better off going to a pawn shop if you need quick cash.

A friend of mine did a payday loan a few years ago, before those places were popping up every other block, and I kept trying to tell her that she was just digging herself a hole. She borrowed $500. Her spending habits stank, and the next week, she had to get and extension on the loan, for a $120 fee. So, week 1, she still owes the $500 and just paid $120 for the privilege. This went on for 6 or 7 weeks, each week costing her $120. The company did not take partial payments of the debt – it was all or nothing (with a fee). Her husband ended up working tons of overtime to pay that off. The words “vigorish,” “loan shark” and “organized crime” come to mind. I’m astonished that these places are legal.

To the OP: if you’re this desperate, talk to your creditors, employer, your bank or credit union, etc. If at all possible, avoid these “payday loan” places. Even if you manage to escape with only the $16 fee, you’ll get gouged. If you’re using these places, you’re in desperate shape and you need to get your finances under control. You get one – then when it’s renewed you have to take out another to cover your regular bills. I now owe appox $2,000 and can’t afford to pay any other bills. I will never be able to pay these off! The interest is TOO HIGH. I have bad credit and tried to get a personal loan for $2,000 to pay thme off. I am willing to pay back $3,0000. I am SO DESPERATE! DON”T EVER Do THIS TO YOURSELF. It’s NOT worth it.

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