Can I Get Multiple Payday Loans?

Can I get multiple payday loans?Wondering if you can get multiple payday loans at one time? It varies by the state you’re in, but in most cases you should be able to take out more than one at once. This situation can often occur when the limit you’re given isn’t enough, or when you take out less than you needed and need more before you pay back your original loan.

If you need a larger amount of money payday loans probably aren’t your answer. The reason is because they’re always due in full on your next payday and it’s often impossible to pay them off and not re-loan on the spot. The fees can then compound on each other and represent over one hundred dollars a month just in fees and interest. This is really expensive money, and payday loans are really meant for smaller emergencies often less than $1000.

Using payday loans for things that they weren’t intended for you stand a high chance of getting into financial trouble. While it may seem like your only option when you’re in the moment of a financial crisis, you’re going to regret it later when you have to try to make multiple payments at the same time on your payday. It ends up dragging the problem out over multiple weeks, months, or even years if left unchecked.

Can I Get Multiple Payday Loans? In Most Cases, Yes.

While there are some states that only allow one loan out at a time there are many more than allow you to get two, but not more than that. And of course there are some states that don’t put any regulations on it, and let you get as many as you can muster on your own. There’s also online loans that have higher limits and allow you to pay it back with monthly payments instead of all at once on your payday.

Loan Limits
Some states put a cap on how many loans you can have out at one time, for example in Michigan you can only have 2 out at once, and they track it using a statewide database. If you try to take out a third loan the system won’t allow it at the lender. This of course entails doing business with a legit company that checks the state database before loaning to you.

The Danger of Doubling Up
Before you think about taking out another, possibly a third or fourth payday loan, stop to consider why some states have these caps in place. Payday loans are calculated based on your income and even taking out one payday loan at the maximum that they offer you is going to require some financial acrobatics in order to pay it off on your next payday. By taking out additional payday loans, you’ll get into the classic “robbing Peter to pay Paul” scenario, where Peter and Paul are both payday lenders.

Paying Off Multiple Loans
If you do get into the scenario where you have to pay back more than one payday loan when your payday hits, you’ll find that you don’t have anything left over when you pay them back, which forces you to re-loan both loans on the spot in order to survive until your next payday. You are instantly in the payday loan trap, and this can go on indefinitely unless you have a plan to pay them off. You can try to go with a payday loan debt consolidation service which will lump your loans together, and allow you to make installment payments over time.

This might be a tough time for you and you might not want to hear that you shouldn’t take out multiple loans, but we’ve seen it too many times where people try to juggle loans and often end up doing more financial damage to themselves if they just would have stuck with one, or even avoided payday loans altogether. Getting the money fast is a big draw, but having to pay it all back on your payday, plus the fee makes it one of the most unattractive lending options available. Be sure to exhaust all of your different possibilities before you go with a payday loan, and for sure before you double up on your payday loans.

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