The FTC put out a somewhat well known piece in 2000 that should be read and re-read by potential payday loan users. I will summarize the key points here.

Consider a small loan from your credit union, an advance from your employer, a loan from family/friends or perhaps a cash advance on your credit card. Know the terms before you pull the trigger.

Always compare the APR and finance charge for your credit options and go with the lowest cost.

Always ask creditors for an extension on your payment but be sure to find out if there are extra charges for paying late.

Do your best to track your current income and spending. Most of us spend more than we bring in because we buy items we don’t need. See what you are wasting money on and stop doing it.

Always check to see if you have overdraft protection on your checking account. It can help but you need to know the terms.

Consider contacting a local consumer credit counseling service if you need help working out a debt repayment plan. Many of these services are very cheap or cost nothing at all.

If you find that you must borrow from a payday lender, please only borrow what you can afford to pay with your next paycheck and still have enough money to get to the next pay day.

Clearly payday loans can be very dangerous to your financial well being. The FTC is doing what it can to educate folks about the danger.

Always remember that if you take a payday cash advance, please only borrow what you will be able to pay back when you get paid from your job and still have money to get through the month.

Rolling existing payday loans can be a disaster financially. Please always borrow responsibly.