Kind of a catchy title, "Online Payday Loan Traps, Have You Been Caught?" unless you have been caught. There are traps to be watched out for when using these companies that will make them very wealthy and you very poor, all in a very short time.

My story today is about a man who desperately needed money. He went online and found one of these companies that would deposit up to $500.00 into his checking account withing 24 hours as long as he made $800.00 a month, even if he had bad or no credit. Too good to be true, right? It was.

He was so exited about getting this money he really did not pay attention to what he was being told, and missed the part where the loan would be set up for 36 months at an incredible interest rate. They would take the payments out monthly for the next 36 months, and this is how he got set up to get caught in a payday loan trap.

This, like many other stories involving these companies, gets very ugly. By the time man got out from under this mess. He ended up not being able to cover the payments and went into default with the company, who would not stop trying to take out his payments form his bank.

This in turn crashed his bank account so bad he had to close it, but could not because the bank needed a zero balance to close the account, and this loan company kept banging it for their payment. This is not going well for this man by now, and he is starting to get harassing calls at work and at home from the loan company threatening to take him to court. All of his references are getting calls asking where to find him, and life is just not very pleasant.

By the time he got this all figured out and everybody paid back, he had spent nearly $7500.00. All he needed to do was pay attention when he was applying for this loan and he could have avoided all this ruckus, and saved a whole pile of money.

See, they did not bother to tell him very loudly as hew was applying that if he called them 3 business days before his payment was due he could have paid the whole loan amount off, consisting of only one months interest and the loan fee, instead of making all 36 payments. He could have knocked this loan out right away and been done with it instead of ending up at a payday loan consolidation company.

In hindsight, he now knows by learning the hard way that picking the right payday loan and understanding all the terms of that loan is imperative to avoiding the payday loan trap!

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