Payday loans are debts that most people cannot handle even if they make lots of money. If you have already sunk yourself with some, you may be able to receive a consolidation at Prosper.com to get the interest rates under control.

Lenders there can see your situation as you explain it, along with some data from your credit history, and can also read between the lines to figure out - are you chronically bad at managing money - or was this a one time honest mistake? I lend to people there who are generally good people but accidentally got caught in the payday loan trap and would not continue delinquent behavior once the loans were consolidated.

Payday loans are dangerous because people who are already short on money are entering into a high interest situation. Now, it isn’t called interest, it is called fees. But the fees, if annualized, can be comparable to interest running in the hundreds of percent, such as 300%, or 500%. The way it is phrased, that the cost may be $9.31 per $100 borrowed, gets people to think that it is 9.31% APR. But no, that is the cost for TWO WEEKS, for example. If you were to multiply that by 26 to get the cost per year, that example is 242.06% APR. This is the way I am understanding it, anyway. If I find a better explanation that pokes holes in my logic, I will let you know later. To add insult to injury, most people spend their paychecks just keeping the FEES paid, never touching the principle. So after months or a year they may still owe the original $100.

People who are short on money will only be MORE short on money after paying out tons of money in fees but not paying off the original amount borrowed. 90 some percent of people cannot handle payday loans. And only 1% of people really use them to their benefit, one source said.

Like I was saying, if you have already gotten stuck in this trap, go to Prosper.com and get a listing up and see what happens.