Payday loan? Any ideas?

[southernbelle]

I was paid on May 9th and paid bills, bought some groceries, and gas. My next payday isn't until May 23rd and I have two bills due before then. I'm struggling to keep afloat, but I'll need about $100 to make sure I don't have an overdraft and need enough to buy gas for work and don't have anyone to borrow from.

Any thoughts on how to cover the difference until next payday? I'm considering the ultimate sin, a Payday loan (I've never done that before), but I'm out of ideas and don't want to end up with $40-$50 in overdraft fees from my bank.

[danaf]

oh gosh - don't do that. I've never taken one but I know people who have and they never get out of it because once payday comes up, some other expense happens and well, they just end up not paying back. Can't you borrow from family or friends? Or sell some things?

You may need to consider working a part-time job in the near future to make ends meet so you can cover your basic bills.

No judgement here. If you have no other way and are 100% sure you can pay all back right away, then you have to do what you have to do. $100 is not an outrageous amount at least.

[southernbelle]

I've thought about selling/pawning something, but didn't know if that was better than the payday loan or not (don't want to get in trouble with the Trustee). I will have the $100 + fees to pay it back from my next check because the bulk of my bills was paid from this last check, but I just need to make it until then. The super high price of gas isn't helping me either. I just paid $45 to fill up and that might last a week and a couple of days.

I would REALLY hate to do it, but then the issue of whether I can do it comes up as well. If I can't come up with anything else and really needed the payday loan could I do it since I've just had my 341 and I'm not discharged yet? Is it technically a loan or do they just hold the check and take the money out on your next payday?

Also, I'm looking for another job, but since I work full time, it's hard to find something that won't have me working til the wee hours of the night, but I think I'll do what I have to. I'm going to have to find something anyway because I'm hoping to file a chapter 13 to pay the taxes I owe that won't be discharged in my 7.

[Scott50]

check out this recent story about the evils of pay day loans..

http://www.chicagotribune.com/news/nationworld/chi-sun-payday-loans-may11,0,7823296.story

[qwertysue]

Just a thought, and I don't even know the ramifications of it during BK, do you have direct deposit at your bank? If so, do they have direct deposit advance? I know my bank will advance you up to a certain amount and the amount you are advanced is taken out of your next direct deposit.

I know desperate times calls for desperate measures, but research any idea before you do anything. I'm sorry you're having to struggle lately--it certainly doesn't help the stress of BK.

[southernbelle]

Now that's a great idea. Yes, I do have direct deposit with my bank because I work for the state and they went to paperless checks and require direct deposit. I'll call them right now. I love this place, you guys are awesome.

Trust me, the last thing in the world I want to do is a payday loan because I've read so many negative things about them and how much they charge, but the only alternative is to pay bank fees that add up quickly, and I would still have the issue of no gas to get to work and no one that I can carpool with.

Thank you again.

[southernbelle]

I just called my bank and it took 3 reps before someone actually knew what I was talking about. They don't do it.

[DisneyGirl]

Have you tried the HR dept where you work? Some companies will make small advances against your next paycheck. Where my husband used to work they would let employees do that two times a year. Good luck!!!

[pd1373]

In March the Mrs. and I had a miscommunication and the checkbook ran $300 over with a week before payday.

Because I was (and still am, for now - today is day 61) in Ch7 bankruptcy I couldn't even get a payday loan from the first place I tried. They'd take me after I was discharged, but not until then. As it happens, the credit union where I have my one car loan was offering "rapid cash" loans to compete with the payday places - $15 per $100 for two weeks, fees are reduced if you pay back early. Despite the car being included in bankruptcy (I reaffirmed it last week) they made the loan and I got $500 from them after writing a $575 postdated check. Paid back $537.50 cash one week later and let them destroy the postdated check.

Interestingly, the bank that has my checking account didn't charge me any overdraft fees at all. I suspect this was because of the bankruptcy. Still, it's not good to not have any money for a week.......

It wasn't tragic. It was annoying, but not tragic.

[WhatMoney]

Does your checking account have any type of overdraft protection? The bank will honor an overdraft up to some maximum and charge you a fee, usually $25-$35. Just withdraw what you need with one check or debit withdrawl, and pay your bills with that. Obviously you only want to incur one overdraft fee.

It helps to have a second checking account at another bank if you are going to tap your overdraft protection, since you can use your personal check to deposit the "borrowed" funds in the second bank. Always better to bounce your own check deposited in your own account.

I had two accounts at the same bank with $1000 overdraft limit on each. There was a time when I had to "borrow" from both accounts, and was overdrawn by nearly $2,000 for a couple weeks. When my monthly direct deposits finally arrived, both accounts were brought back to positive. I was charged $54 (2x$27) to borrow nearly $2000 for 2 weeks - cheaper than a Payday loan.

[imbroke2]

What bills are they? Had you ever been late with them before? I know if they're utility bills, I myself would just wait until payday and pay them then. There's usually a small late fee, but nothing will be shut off immediately and you won't have the bounced check fee.
I like the other pp-overdraft protection at the bank. Most banks have that now. You could give them a call.

[southernbelle]

I might take WhatMoney's advice and just pay the fees when the bank charges them, because aside from needing gas, my water bill and insurance is going to be deducted automatically from my acct. in a couple of days.

I would hate to have my acct. sit negative for a week and a half, but you guys are right, that might be my only alternative right now. I think my next step is to find out how much overdraft protection I have and to get a schedule of bank fees because last month I paid $50 for one overdraft and $32 for another and that's nuts.

[Cali]

I am so glad they made them illegal for military members here. I have read so many horror stories about them.

[WhatMoney]

I might take WhatMoney's advice and just pay the fees when the bank charges them, because aside from needing gas, my water bill and insurance is going to be deducted automatically from my acct. in a couple of days.

Ouch! Can you still stop those automated payments? That's the first thing I did once I saw a cash crunch coming on. I pay all my bills on a one-time basis, from either the company's online site (preferred) or from Bill Pay on the bank's site. And if there is no money in my account, then I pay in person in cash (that you borrowed from your checking overdraft or whatever). You need to be able to control when and how you pay your bills. Auto-pay takes away your options - and if you don't have the funds in your account, the fees can get ridiculous.

[epiphany]

Ouch! Can you still stop those automated payments? That's the first thing I did once I saw a cash crunch coming on. I pay all my bills on a one-time basis, from either the company's online site (preferred) or from Bill Pay on the bank's site. And if there is no money in my account, then I pay in person in cash (that you borrowed from your checking overdraft or whatever). You need to be able to control when and how you pay your bills. Auto-pay takes away your options - and if you don't have the funds in your account, the fees can get ridiculous.

Me too, I will never again auto pay anything.

SB...It might be too late to stop those auto payments for this month, but I would definitely stop them asap. Plus, utility companies will usually work with you, assuming you are not way behind, if you call them and say can I pay you on this day instead? I have always found them to say yes. They will charge you a late fee but it is really minor in comparison to overdraft, bounce or late fees from a financial institution.

ep