The cycle of debt can be best understood by an example (and there are thousands of stories like this out there!):

-John is out of cash, and his next paydate is over a week away. He visits a payday loan Website on the Internet and takes a loan out for $300, and agrees to repay it plus a loan fee of $75 on his next paydate (yes, the fees are often that high, and sometimes even higher!).

-When his next paydate comes around, he realizes he doesn't have $375, and can't pay the full amount. The loan agreement from the first loan (which John may not have read!) states that if John doesn't make arrangements to pay the full amount off on his next paydate, that the loan balance will "roll over" or "renew" with a new loan fee. So now John has a new loan (replacing the first) for $425.

-This cycle repeats for four or five more paycycles, until John has racked up a total loan of $700. That is, he now owes more in loan fees than he does in principal!

Unfortunately, many folks in John's situation simiply can't come up with the cash to repay this remaining balance. So, they resort to the only lender that is available to them -- another payday lender. John now gets a new loan for $700 to pay off his first loan. And the cycle continues....

If you have been in this situation (like I have), you'll understand the desparation and crushing feelings of helplessness that John feels. Once you are in this cycle of debt, how do you get out? Luckily, there are ways you can get out. They take some time and a little effort, but they are well worth it. Imagine the feeling of freedom once you have your full paycheck back and your bank account is no longer getting debited by multiple lenders!! It's your paycheck. You earned it -- get it back!

There are several steps that payday loan borrowers can take to win back their paychecks.

* First, pick a responsible, licensed lender. Licensed lenders charge lower rates, and are often limited in the number of times they can allow their customers to roll their loans over.

* Next, get a clear picture of your debt situation. If you already have a loan (or more than one), spend a few minutes and get an accurate view of how bad your debt is. Collect all your loan agreements and create a financial worksheet with information from each loan agreement.

* Now, get a clear picture of your credit outlook. Are you eligible for cheaper credit? Do some simple (and free) research to understand your credit score and credit history. Also contact the credit bureaus that track your "subprime" or payday loan credit history. If your credit history is reasonably good, you may be eligible for cheaper and less destructive credit.

* Finally, take action to clear up your payday loan debt. Based on your debt situation and your credit outlook, you can make good decisions about how to pay off your payday loan debt.

The payday loan debt cycle can be crushing -- but you can get out of it! Imagine how relieved and happy you will be once your paycheck or benefits check is free from debts to payday lenders!

Find more tips, worksheets, and resources on how to get out of payday loan debt, how to avoid a default on a payday loan, and escape the cycle of debt.