Now that I told you what a bad idea getting a payday loan is I'll talk about what will happen if you default on the loan or more how to avoid it.

Negotiate: The first this you can try if you have found yourself in a spot where you were not able to pay back your payday loan, is negotiate. You can't negotiate with them if they never hear from you.

So the first thing to do is call the payday loan company and start telling them what happened that stopped or will stop the repayment of the loan. Now don't wait for the day the loan is due to do this. Most of the time you can see that you will not be able to pay far before the loan is due.

Now negotiation may or may not be possible with the payday lender that you are working with. It is going to rely on the company and if they want to negotiate a deal with you or just drag you through the mud, it's up to them.

Another thing that could effect the negotiations is how much you owe them, and how late you are on your payments. You might get lucky and they will decide that the best thing to do is just have you pay back the amount you owe them instead of taking more loans and go deeper into debt.

If Negotiations Don't Work: If you were unsuccessful in working out a deal with the payday loan company you are working with. They might be willing to give you one month to come up with the money and charge more interest just to make it sweeter for them. Thats their way of being nice.

You could also try to get an extension on the loan. Be aware that you will have to pay an extension fee to do this and they only allow two extensions then you're done.

If that doesn't work for you then it is time to get creative. You need to start living more frugal. Don't go out to eat.

If you don't have to drive some where, walk instead. Look at you budget and see where you can free up a few dollars. I understand though that the fact you get a payday loan was probably because you never set a budget for yourself in the first place.

You might want to consider a debt consolidation program that will help you set up a plan and deal with the debt collectors. But whatever path you want to take you need to choose one or you will find yourself in a hold to deep to get out of and at the end of that road is bankruptcy.