If you have recently found yourself looking into getting one of those payday loans, you are not alone. These loans promise to be quick, easy and you will likely be approved as long as you show up with a pay stub to prove employment. Not everyone has extra savings or family resources to turn to when an emergency bill pops up, so to the payday loan store you go. Read on to learn more about how these loans work, what happens when you cannot pay and how to take action to bring about a real change to your financial situation.

How they work: Once you sign a raft of paperwork and show your pay stub, you can be in and out of the loan store in less than an hour. How do they do it? When you accept money from one of these lenders, you are allowing them to access loan repayment by way of a check.

This check, which you must provide at the loan signing, is made out to the loan store in the amount of the loan payment (plus interest and any fees) and will be dated to correspond with your next payday. This sort of operation is perfectly legal, as long as you have every intention of making good on the check. Otherwise, it is considered fraud to write a post-dated check.

When you cannot pay: Since these lenders charge punitive interest rates, it can be easy for consumers to panic when they realize what they've done. It gets even worse when you cannot make the payment. These lenders know that people in need are likely to need to refinance the loan every time they cannot afford to make good on the post-dated check.

That's more penalty fees and additional interest rates. Take this example: You took out a payday loan in the amount of $900.00, and the total amount due including interest might be $999.00, but that figure is only accurate if you make your payments on time.

Take a look at the fine print in your paperwork to see how your loan accrues interest and penalties, and be aware that the loan store may make threats to have you arrested for presenting them with "bad checks." In other words, they will attempt to intimidate you by alleging that you knowingly wrote post-dated checks that you could not honor. In all likely-hood, these are empty threats since you had every intention of honoring your commitment.

Take decisive action: You can put a stop to not just payday loan collection activities, but many other invasive and aggressive creditor actions. Speak to a bankruptcy attorney for help in filing a chapter 7 bankruptcy, and be sure to add your payday loan to the matrix regardless of what the loan store tells you. Payday loans are an unsecured debt, so get the relief you need today.