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Loans & Debt

How to avoid predatory payday loans

Payday loans are expensive and risky. Learn legal risks, warning signs, and better options that won't trap you in debt.

Warning signs

Triple-digit APR equivalents, rollovers, "no credit check," access to your bank account, aggressive collections.

Safer alternatives

  • Paycheck advance from employer or earned-wage access.
  • Credit union small-dollar loans (PALs).
  • Payment plan with utility/creditor.
  • Local assistance programs.
  • Side income gigs + budget triage.

Steps if you're stuck

  1. Stop rollovers; request an installment plan if allowed.
  2. Close/restrict ACH access after payoff.
  3. Prioritize essentials; negotiate other bills.

Frequently Asked Questions

Are payday loans legal where I live?

Laws vary by province/state—check your regulator.

Will it help my credit?

Most don't report positive payments; some report delinquencies.

Better Options

See 10 payday-loan alternatives you can apply for today.