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Love and Debt: Why you need to talk about money

How to Stop Living Paycheck to Paycheck

Where to go for mortgage and debt help

What You Should Know About Debt Settlement

Create a plan to deal with medical debt

Options for Higher Education

Will Changes in Credit Reporting Affect You?

What to do if your medical bills are turned over to collections

What to do if your spouse can't pay his or her bills

What to do when a family member ruins your credit

Homeownership is possible

What you need to know about the IRS and collection agencies

Will being turned down for a store credit card hurt my credit?

Beware of credit repair

Debt Management versus Debt Settlement

How to get ahead of late fees

Is There a Service That Helps You Not Pay Bills

Is a Debt Owed

Patience is the key to furnishing a new home

How to split expenses with your partner

Will my boyfriend's bad credit affect me?

What to do if your account is turned over to collections

Personal Credit and Starting a Business

Finding Money to Reduce Your Debt and Improve Your Credit

Simple Keys to Personal Finance

Be vigilant to avoid telephone and internet scams

Debt Settlement

Understanding credit utilization

The pros and cons of skipping a payment

Keep an open line of communication with parents about their finances.

Make a Choice to Get Ahead Financially

What to do when a relative asks you for money

Should You Buy a Home Now or Wait?

The difference between debt settlement and debt management

The negative impact of paying a payment 30 days late

Stressed by Finances

How to navigate two significant financial decisions: starting a family and buying a home

How to advise someone close to you who is coming into a significant amount of money

Make a Conscious Decision on How to Spend Your Money

How do you know if you have a good credit score?

Americans spend more money eating out than on groceries

Having Good Credit Saves You Money

Developing good money habits with your first job

How to save for a home

How to Know if you are Ready for Home Ownership

When is the right time to buy a home?

You can improve your credit to buy a home

Plan a Memorable Vacation Without Incurring Debt

The Hidden Costs of Payday Loans

Be Wary of Credit Repair Services

Use Caution when playing the credit card game

What does it mean to say bankruptcy gives you a clean slate?

How your credit is affected by various debt options

Be wary of predatory small business loans

What to do if you fall behind on mortgage payments

Financing a College Education

Money, Credit and Relationships

Should you be concerned with your date's credit scores?

Best options for a small, short-term loan

How to help a relative who is always borrowing money from you

Skipping a Payment over the Holidays

What to do if you are overwhelmed by medical bills

Make your financial intention a financial goal you can achieve

What to do when a collector calls you

The difference between paying bills and managing your money

My wife and I have gone through some tough financial times, which eventually led us to file for bankruptcy.  Following this experience, I don’t ever want to use credit again, but my wife

What do I need to know to pay ahead on my mortgage?

What to do if you get an unsolicited credit card in the mail

What to do when moving in to share expenses doesn't work out

The Hidden Costs of Payday Loans

Q. I’m struggling with a payday loan. I couldn’t pay off my first payday loan, so I went to another company to borrow more funds to pay it off.  Now I can’t pay off the new, larger loan.  What can I do?

A. Getting caught in a cycle of debt is a common problem with payday loans. Given the circumstances, you have a few options to consider. 

First, if you got your payday loan from a local company, go in and talk to the manager. See if the manager would be willing to set up installment payments on your loan. If he or she doesn’t agree to new payment arrangements, don’t take out another payday loan, which will only compound your problems. Instead, seek another option for repayment.

Second, you could consider visiting your nearest non-profit credit counseling agency and see if they can assist you. They will review your financial situation and can advise you on the best way to pay off your payday loan. Oftentimes, a fresh perspective can help you get a better handle on your finances. You may realize that reallocating some of your money will be enough to repay your loan.

Third, you could consider borrowing money from a friend or relative to pay off what you owe. If you pursue this option, you need to be clear about how you will repay what you borrowed and then make good on your promise. Your friends and relatives work just as hard for their money as you work for yours, so be diligent. 

Finally, you might choose to sell something you own at a pawn shop, second hand store, or online and use the money you make to pay off your loan. However you choose to repay your debt, I’d encourage you to break the cycle of using payday loans.

The Consumer Financial Protection Bureau (CFPB) recently reported that payday loans have a ripple effect for many people. The CFPB revealed that half of online borrowers incur additional banks fees averaging $185. These fees are a result of penalties when an online lender attempts to debit the borrower’s account. 

This happens when lenders collect payments by sending an online request to your bank or credit union. Even when the funds are not available, they make repeated attempts to collect the money. Each time this happens, the bank or credit union assesses an overdraft or insufficient fund’s fee. Meanwhile, online payday lenders charge a fee if they are unable to collect payment. These fees quickly add up.

According to the CFPB, a third of those who incur extra fees also end up having their account closed involuntarily. It can be a significant hardship to live without an account at a bank or credit union. 

You’ve already seen how problems with payday loans can snowball. I encourage you to meet the situation head on; look at all of your options and pay off your loan as soon as possible.

Bonnie Spain is the executive director of the American Center for Credit Education and Consumer Credit Counseling Service of the Black Hills. For more information, email

The material in this transmission is provided for personal, non-commercial, educational, and informational purposes only. ACCE makes no representations or warranties with respect to the accuracy or completeness of the contents of this transmission and assumes no responsibility for errors, inaccuracies, omissions, or any inconsistency herein. You should consult a professional where appropriate.