Do's & Don'ts
Smart habits before considering a payday loan.
A few informed steps before borrowing can protect you from costly mistakes, debt traps, and unnecessary financial stress.
✓ Do These Things
- Calculate the total repayment amount — not just the loan amount — before agreeing to any terms.
- Confirm the exact due date, payment method, and what happens if funds aren't available.
- Compare lower-cost alternatives first: payment plans, credit unions, local assistance programs.
- Borrow only what you can repay in full on the due date without creating another financial emergency.
- Save copies of all loan terms, fee disclosures, and payment records for your records.
- Check your state's regulations — some states cap fees or offer additional consumer protections.
- Read the full agreement, including fine print about rollovers, renewals, and ACH authorization.
✗ Avoid These Mistakes
- Don't borrow without reading and understanding the full cost disclosure required by law.
- Don't ignore rollover or renewal fees — they can double or triple the original cost quickly.
- Don't use short-term loans as a recurring monthly solution for ongoing expenses.
- Don't share sensitive financial details with unverified websites or unfamiliar lenders.
- Don't assume you'll be approved or that terms will be favorable — review everything first.
- Don't give lender access to your bank account without understanding exactly when funds will be withdrawn.
- Don't let a short-term loan become a long-term obligation through repeated rollovers.
Before You Borrow
Alternatives worth reviewing first
Payment Plans
Contact utility companies, medical providers, or creditors directly. Many offer hardship plans or extensions with no or low fees.
Credit Union Loans
Many credit unions offer small-dollar "Payday Alternative Loans" (PALs) with capped fees and interest rates significantly lower than payday lenders.
Employer Advances
Some employers offer paycheck advances as a no-cost benefit. Some payroll apps also let you access earned wages before payday for a small fee.
Nonprofit Assistance
Community organizations, nonprofits, and faith-based groups often provide emergency financial assistance, food support, or bill help with no repayment required.
Personal Loans
Banks and online lenders offer personal loans with longer repayment terms and much lower APRs — even for borrowers with imperfect credit histories.
LIHEAP & Government Aid
Federal and state programs may help cover utility bills, housing costs, food, or medical expenses — reducing the need to borrow at all.
Want help finding the right resources?
Request information and we'll point you toward educational materials on alternatives and consumer protections.