I'm in sooo deep...long

[CityGirl]

No, not at all. I seriously just asked. In NY, payday loans are illegal and I thought you had to take it and pay it back with your next paycheck. I just wondered how she could take it and in 2 weeks know she couldn't cover it with that paycheck. I dont' really know how they work but "payday" loans kinda suggests it's a 2 week loan. I didn't mean to sound like I was suggesting she KNEW she couldn't cover it but wondered how because usually you know what your check will be within 2 weeks.

CityGirl, I hope you didn't really intend that to sound the way it did. Nobody takes a payday loan on a whim...and if you have more than one they're a nightmare to get out of.

Jennyn, welcome and best of luck to you. I included my overdrawn checking account in my bankruptcy, but made sure I opened another checking account & switched direct deposits before I filed.

razmom

[CindyLou]

Well, let me tell you my story and give you a little warning. DO NOT EVER APPLY FOR NEW CREDIT OR A NEW ACCOUNT AT THE BANK WHERE YOU OPENED YOUR NEW ACCOUNT. I put that in all caps because I had opened a new account at Wells Fargo preBK. I had some NSF fees at another bank that I included in my BK. Then about a year or so after I was discharged I applied for a secured card at Wells Fargo. Well not only did they decline my app. They also FROZE the money in my checking and savings acct due to my chex systems report on the NSF stuff that was included in my BK. They froze the accounts because they were closing them out and were going to mail me checks for the balances. I had PERFECT histories with them....never an overdraft. Nothing. Period. Basically I ratted myself out. Luckily I had gotten to know my local bank manager. He was able to unfreeze my funds and keep the accounts open. It was a mess. And of course it happened on payday!!

[SinkingFast]

We never got into the pay day loan cycle, but I've read stories here of people who did.

Take one pay day loan to get by. Repair the car. Pay the electric bill. Whatever. Then, they know they aren't gonna have the money for the first pay day loan when their check comes in because they've got other bills to pay, groceries to buy.

Soooooo,......... Off to the 2nd pay day loan place to get a pay day loan to pay the first pay day loan place. And then a 3rd pay day loan to pay the 2nd. And then a 4th to pay the 3rd. And before you know it, you're in a vicious cycle.

[jennyn]

Citygirl;
Payday loans s/b illegal, especially the ones offered online. That's what I had (too embarrassed to visit in person) they come due on your payday but if you can't pay they "extend" until next payday and so on, and so on... for a warning to all those that haven't been trapped yet, here is the info on mine. I like to pretend that if I had seen it laid out like this I would have avoided.

Finance amount: 500.00
Finance charge: 125.00 (min pmt due every 2 wks)
Annual % rate: 651.79%

another

Finance amount: 200.00
Finance charge: 56.00 every 2 wks
minimum pmt: 88.00
Annual % rate: 730.00%

Can you say loan shark??