Pay Day Cash Advance

While growing numbers of Utahns are turning to payday lenders for help, debt counselors -- and even some payday lenders themselves -- say such loans should be used only as a last resort.

"Almost always, there are other alternatives," said Linda Hilton, coordinator of the Coalition of Religious Communities, who has worked with many people who faced extra financial troubles from such loans.

"People can work with companies that they owe money to. For example, doctors are usually willing to work out payment schedules. If they have trouble paying rent, there are agencies that can help them," she said.

Mike Peterson, vice president of the American Credit Foundation counseling service, said, "We advise them (payday borrowers) to find any way out they can: Have a garage sale, take a temporary job to help in that financial crisis. If they have any large item, like a boat, that they can sell to make up that differential, they should."

He added, "Heaven forbid that a credit counselor urge use of credit cards, but credit cards have lower interest rates than payday loans. In an emergency, is there an unused balance there they could use instead?"