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Q: I am caught up in the payday-loan game. I want out. If I didn't have this hanging over my head, I could pay all my debts on time. I need to know if there are any debt-consolidation places that can help me get out of this circle.

A: Your description of borrowing using payday loans as a circle is accurate. In fact, it has been referred to as a vicious circle. Once you have entered the circle by taking out a loan that is to be paid by your next paycheck, you begin a cycle that can be extremely difficult to break.

If you are living paycheck to paycheck, as so many American families are, and are without savings or conventional credit (credit card, line of credit, etc.), handling an unexpected expense can be a major problem. A payday loan can seem like a best friend at a time like that. However, this puppy not only has a long tail, but it can sure eat a lot and might have fleas, as well.

The main reason, as you have discovered, is that the money from the first loan is taken from your next paycheck. That leaves you with less income than you are used to and, for most people, puts you behind on your usual expenses. Therefore, to catch up so you aren't late on any bills, you go back and get another loan or renew your current loan.

One of the many problems with these types of loans is that until you can break the cycle of borrowing, repaying and borrowing again, you never really catch up. In other words, until you can start to save some money, you are behind the eight ball.

As an example, a person who borrows $300 for two weeks with a fee of $10 per $100 borrowed would pay $330 for the loan. If annualized, that rate of interest would be 260 percent. To calculate the cost of a payday loan, visit the Consumer Federation of America Web site.

A $30 fee may not seem like much at the time, and the payday industry says it's unfair to cite an annual percentage rate when the borrowing period is only two weeks. But if you need to renew the loan because you can't pay, the costs accelerate quickly.

My advice: Don't look for a consolidation loan or program before you first figure out how you can start to live on what you earn, and then begin to save money.

Help is available for you and others who are trapped in this circle.

Contact a reputable credit counseling organization, and it will help you by putting together a spending plan that will allow you to finally break the payday-loan circle. You might start by contacting a member of the Association of Independent Consumer Credit Counseling Agencies or the National Foundation for Credit Counseling. Tell them you are interested in getting help with creating a budget and a written action plan. The cost should be low or free, and you should be given a range of alternatives that will work for you.