A sure sign that a person is ready to file bankruptcy is a reliance on payday loans. Let me be clear: these things are flat-out scams. Any loan with interest rates over 100% should be illegal. I’m not entirely sure why our elected representatives have not outlawed these things. Alas, they are a part of life for many people.
Taking a payday loan is often a necessity for someone in a dire financial position. The problem is that while the loan provides immediate relief in a tough time, the consequences of the payday loan are long-lasting.
The fees and interest with these loans are abusive and put desperate people into an even worse position than before the loan existed. This is especially true when people “roll over” their payday loans multiple times. A recent report indicated that over 80% of new payday loans are not paid in full on their first maturity date. And a majority of payday loans have been “rolled over” at least 10 times.
The good news is this: payday loans, just like all other forms of unsecured debt, will be eliminated after a successful Chapter 7 bankruptcy. Of course, payday loan companies don’t want you to know that. In fact, I have heard many stories where payday loan companies have flat-out lied to my clients and told them that the loans were not dischargeable in bankruptcy. Take it from an expert: these predatory loans are absolutely dischargeable in a bankruptcy. Bring it on, payday loan companies!
Everyone deserves a fresh start. If your finances are a mess, don’t turn to predatory payday loan or cash advance companies to try to make ends meet. You would probably have better luck taking that same money to a casino and putting it all on black. At least the casino won’t follow you around for years trying to get more and more of your money.
Don’t fall in the payday loan trap. If your finances need a fresh start, you should skip these scam loans and consider bankruptcy relief. My office can help you get a fresh start. Please call me at (916) 333-2222 to find out more.