The Debt Cycle is Designed to Trap You

Payday loans seem helpful, but their structure of high fees and short terms makes them incredibly difficult to pay off. When you can't pay the full amount, you're encouraged to "roll over" the loan by paying just the fee. This generates a new fee, but your original debt remains unchanged. Our "Rollover Trap" graph shows how this quickly spirals out of control.

Alternatives to Payday Loans

Before taking a payday loan, explore these safer options:

• Local Credit Unions: They often offer small, low-interest loans (Payday Alternative Loans, or PALs) to members.
• Credit Card Cash Advance: While expensive (often 25-30% APR), it's almost always cheaper than a payday loan.
• Negotiate with Creditors: If you need money for a specific bill, call the company first. They may offer a payment plan.
• Ask for an Advance: Some employers offer paycheck advances at no or low cost.

Where to Get Help

If you're already caught in a debt trap, you are not alone and there is help available.

• National Foundation for Credit Counseling (NFCC): A non-profit organization that can help you create a budget and a debt management plan. Visit NFCC.org
• Consumer Financial Protection Bureau (CFPB): A government agency that protects consumers. You can learn about your rights and submit a complaint. Visit consumerfinance.gov