Helpful tips

How to avoid the payday lending debt trap

Too many in our community need help making ends meet. Financial options such as payday loans are found everywhere and can at first appear to be a good deal. But they usually end up causing borrowers more harm than good.

If you currently have a payday loan and need help getting out, call our counseling hotline at (888) 532-3021. A counselor will return your call within 24 hours.

Have you had an issue with a payday loan provider? Submit your complaint to the Consumer Financial Protection Bureau.

Are you thinking of taking on a payday loan?

Please consider the tips below. In most cases, payday loans are just not worth it.

  • Look at your monthly budget. Will you be able to pay off the loan, with as much as 300% interest (Annual Percentage Rate or APR), plus pay the interest within the typical two-week loan period? For example, if you take out a $300 loan, with a financing fee of $50, you will need nearly $400 to pay the loan back in two weeks’ time.
  • Are there any nonprofit organizations in your area that offer a loan or savings product? Find a nearby NCLR community partner or call our counseling hotline at (888) 532-3021 to find a resource near you. Your call will be returned within 24 hours.

Take action today

Here are steps you can take to make sure you don’t need a payday loan in the future:

  • Consolidate debt.
  • Refinance high-interest debt with affordable products from a local credit union or community bank.
  • Enroll in credit counseling and budgeting programs.
  • Start a savings plan.
  • Find out more about our work to empower Latinos for financial success.