I need quick cash

September 26, 2005 4:26 AM

Cash Advance Filter!

So I'm in need of quick cash until the first or second week of next month (first payday) for bills/food. Is a site like this good or is there a better site/solution?

I believe $500 would be sufficient. What should I expect to owe in full if I get paid Oct 14 at the latest. I'm expecting about $800 by then.

Any help is appreciated, I hate that I'm considering this but I don't see an alternative. Will I be digging myself a hole?

posted by anonymous to Work & Money (30 answers total)

There has to be a better solution--go to FAQs on linked wed site and look at fees and interest--you are talking 500% + APR--Will you be able to pay it back in full in 3 weeks--this could be a very slippery slope if you start running any balance--What altrnatives have you considered and dismissed
posted by rmhsinc at 4:38 AM on September 26, 2005

Local shops around here charge a flat fee (typically about 22%) independant of the length of the loan. A typical loan is until your next payday.
posted by thanotopsis at 4:45 AM on September 26, 2005

Payday loans generally amount to quasi-legal usury, and there is excellent evidence that they are designed in such a way to keep the borrower "renewing" them (and paying ruinous interest) every period rather than completely paying them off.

State banking regulations are starting to catch up with the more predatory payday lenders, and some states are shutting these operations down.

Here's a good site with information on payday lending.

Please exhaust every possible alternative, including borrowing from friends or family, before you consider going down this road. And if you do take out one of these, for God's sake pay off the loan in full at the earliest possible opportunity.
posted by enrevanche at 4:57 AM on September 26, 2005

I've had better success calling my creditors and telling them that I will be late and having them charge me any late fees (they only charged the 1% or so for carrying a balance past due). If you have enough for food to get by - think macaroni and cheese and cheap bagels - then you can avoid getting a loan in the first place. Also all you can eat salad bars are great for meals, as well as happy hours that have a buffet. You just need to get creative and be upfront with those who you will be paying late. Then you should keep on the budget long enough to get enough to carry you through another similar situation without having to resort to "quick cash".
posted by qwip at 5:12 AM on September 26, 2005

Consider paying your bills late, if possible.
posted by elisabeth r at 5:19 AM on September 26, 2005

Your question is worded in a way that makes it seem unclear to when you are getting payed. I suggest calling or e-mailing them, and reminding them that they owe you money, and saying that you are "expecting" it by the first of the month. Who knows, maybe they'll pay early.
posted by ThePinkSuperhero at 5:22 AM on September 26, 2005 [1 favorite]

20% of that loan is $100. So for the $500, you'll be paying back $600 off your next paycheck. Can you survive on <$200 for another two weeks following that paycheck? If not, that's when you'll run into problems and it's best to avoid them altogether by not taking out this kind of loan (losing $100 is a lot of money for such a short-term loan, isn't it?).
posted by mathowie at 5:36 AM on September 26, 2005

think macaroni and cheese and cheap bagels

As a former child of ADC and child-support, I can attest that the following is suitable for human life:

* Ramen Noodles: Not only are these cheap, but places like Wal Mart sell them in bulk.
* Goolash/Chili/etc: Make it one day in a large serving. Instead of just reheating the next day, add in some different vegetables or a different meat.
* Campbell's (original red label) soup: Like Ramen, above, you can commonly find these in bulk.
posted by thanotopsis at 6:02 AM on September 26, 2005

I've never seen anything wreck someone's finances faster than payday loans. You should consider not eating and not paying your bills as preferable to taking out such loans.
posted by jellicle at 6:11 AM on September 26, 2005

I would rather take money from the mob than a payday loan (seriously). People end up perpetually paying for these predatory lending practices. There's a reason they're in poor neighborhoods only, I'm convinced if you saw them in middle-class neighborhoods they'd be illegal faster than you can say "SUV". These are very, very bad -- especially for those who need it to survive. I've heard stories of people using this not for drugs and gambling, think middle-class families needing to pay off medical bills. Even though they thought they had it figured out and had a steady stream of income, the fees and enormous interest rates popped up on them. Delay bills, put food on credit, do anything but this. I'd hit up family for food money before turning to this, and I'd never hit up my family for money.
posted by geoff. at 6:17 AM on September 26, 2005

Sell possessions first.
posted by aramaic at 8:12 AM on September 26, 2005

Can you get a cash advance from your employer? It would just be shown as a deduction from your paycheck and you won't owe anyone any money.
posted by Julnyes at 8:42 AM on September 26, 2005

Please, please do not get a payday loan. It will suck you down, at bare minimum it's gonna cost you ~ $75 and probably a lot more. Call the companies you owe bills to through the 14th. Explain you cannot pay until then. Make payment arrangements - if it's any sort of large corporation, they'll be much happier to arrange a late payment than have you skip an existing one. Ask your landlord if you can wait until the 14th, and explain if they need the money sooner you're gonna have to use a payday loan. Swallow your pride here and do some advance planning; i suspect if you can postpone the bills you can stretch $50 or whatever you have into several weeks worth of crappy (but edible) food. Eggs + ramen + bread + tuna will get you far.
posted by Happydaz at 8:53 AM on September 26, 2005

I've worked at a place that did payday loans. They'd get $500, and they'd pay back $650. Then they'd borrow $500 again, because after paying $650, they couldn't afford basic necessities.

The only way I saw people get out of this jam was to default on the loan, a nice credit-wrecker.

You'd be better off asking your creditors for a slight extension. In fact, while it's a horrible idea, it'd be wiser to get a new credit card and pay everything with that, because the interest fees are still less exorbitant.

I suggest looking for pretty much any credit-safe legal means to avoid getting a payday loan. You don't have to dig the hole, they'll happily do it for you.

I've seen a lot of people who need money just to get by for a month, but only a few of them who could figure out a way to do it without hurting themselves in the long run. If you want some advice on alternatives, shoot me an email (saydur, hotmail) and I'll be happy to offer any ideas I can.
posted by Saydur at 9:22 AM on September 26, 2005

Unlike most people here, I actually do this, and I haven't had any trouble, but I have good paying job, and about $1200 of (theoretically) 'disposable' income a month. I've just had some financial hardships recently.

My local place charges between $25 and $50 for payday loans. The most they do is $450, for which they ask for $500 back in two weeks. If you're going to do it, go with a local place, rather then over the internet. It would seem to be a lot safer.

I have a payday loan out right now for $250, due to an unexpected expence. If you're living cheque to cheque and your car breaks down or something else unexpected comes up they can be helpfull.

I'd honestly rather pay the fees then have something that affects my credit rating, which I'm trying to improve.

That said, the place I whent to only let me get $100 the first time I did it, so you might not be able to get $500.

You also might just want to go to your friends and offer them similar terms for a loan. Why not let your friends profit? Most people would take a free $100 if offered to them, if they trust the person to be responsible. I was able to get a 1-month loan that way when I was super-broke, and everything worked out fine.

Also, you want to make sure you don't 'float' a line of credit with them. 20% a month is 800% a year. Would you get a credit card with an 800% APR?
posted by delmoi at 9:32 AM on September 26, 2005

Also, what's your actual credit rating? You can buy a copy here (directly from transunion, one of the major credit beuros), and see what your score is instantly, and this won't go on your record as an inquery. If you're above 620, 700 something you might be able to get a straight-up loan from a bank. The minimum would be $5k or so and you'll need to make a monthly payment for a couple years, but you might be able to pay it all back.
posted by delmoi at 9:38 AM on September 26, 2005

You can buy a copy here

By law, you can order a free copy of your credit report from each of the three agencies once per year.
posted by thanotopsis at 9:52 AM on September 26, 2005

I'd vote that you do absolutely anything that doesn't involve these payday loan places. Even a credit card cash advance is a better deal, and those are horrible.

Eat ramen, ask your creditors if you can pay two weeks late, sell some of your possessions... anything.

Loans and friends don't go well together unless the friend is willing to just give you the money... though somebody might be willing to do just that if there's no other solution.
posted by I Love Tacos at 9:53 AM on September 26, 2005

Adding on to what delmoi said, it really is different from state-to-state. Some are sligihtly more reputable than others, if you're in Missouri stay way clear as they have the worst laws in regards to predatory lending.
posted by geoff. at 10:18 AM on September 26, 2005

By law, you can order a free copy of your credit report from each of the three agencies once per year.

Yes, by mail, so it'll probably take a month to get your results... which do not include your credit score anyway. That's useful for finding out if you have any inaccurate info, but it won't tell you too much about your loan eligibility.
posted by delmoi at 10:31 AM on September 26, 2005

You might check where you bank. My credit union has salary advance loans with a reasonable 15% APR.

Also, if you qualify for a bank credit card, on sign up they can immediately cash advance into your checking account, without waiting for the physical card. Often there are initial grace periods so you pay little or no interest.
posted by SpookyFish at 10:54 AM on September 26, 2005

Does the mail version of the credit report of which delmoi speaks differ from the free reports the Big Three provide online? Which, indeed, also do not contain your credit score.
posted by cortex at 11:56 AM on September 26, 2005

If your bank is really nice (perhaps a credit union, or a local one at a small town) it might not be too difficult to secure a short-term line of credit.
posted by PurplePorpoise at 12:30 PM on September 26, 2005

In case you don't read the comments above, for the love of all that is holy do not go to a payday loan operation.
posted by Optimus Chyme at 12:34 PM on September 26, 2005

Yes, by mail, so it'll probably take a month to get your results... which do not include your credit score anyway. That's useful for finding out if you have any inaccurate info, but it won't tell you too much about your loan eligibility.

While it's true that you won't get your score, it's false that it'll have to be by mail. Provided you have a credit history, you can get your free reports online here. (There are some other sites that give you "free credit reports", but I'm pretty sure the one I linked to is the actual official one, to whatever extent any of them are official.)
posted by advil at 1:10 PM on September 26, 2005

As others have said, you might be better off charging what you can to a credit card (like groceries) and negotiating with your creditors about payment deadlines.

For the future, please look into getting a checking account with overdraft protection that works like a line of credit. (Just make sure you investigate the fees thoroughly; some banks have these programs and the fee structure is so outrageous, it's no better than a payday loan.)

My checking account has this protection and I pay $35 a year for it. In addition, if I do empty out my checking account and tap into that line of credit, I am assessed a daily finance charge, much like a credit card.

Of course, the potential for abuse does exist. Just use it wisely. Last year it came in handy for me as I had just bought a house and was constantly pinched while budgeting for the repairs.
posted by Sully6 at 1:12 PM on September 26, 2005

to whatever extent any of them are official.

FreeCreditReport.com is run by Experian, one of the 3 majors. I got all 3 of mine via this site last year, and eventually, you'll get full copies in the mail from your order. Total $$ spent: 0.00.
posted by thanotopsis at 2:32 PM on September 26, 2005

Delmoi, are you in Canada? Your spelling seems Canadian...this is an important detail, because Canada seems to be much better at regulating payday lenders than the United States.
posted by footnote at 3:15 PM on September 26, 2005

I'm in Iowa.
posted by delmoi at 6:27 PM on September 26, 2005

The front page of that website says "no hassels." So there's no guarantee against hassles.
posted by celibate_life at 8:02 PM on September 26, 2005