Payday Loans – A Vicious Cycle Of Debt

A Pay Day Loan is defined as “a small amount of money lent at a high amount of interest on the agreement that it will be paid back when the borrower receives their next paycheck.” Consumer advocates and lawmakers strongly urge low-income consumers to avoid payday loans. But when it’s between having the lights turned off at your house and a high-interest loan, the decision is hard for a lot of Americans. And it is no coincidence that everywhere you look there is another payday loan store popping up. When someone needs a loan for less than $500, where can you go? Banks aren’t going to lend to you and the payday loan place on the corner is convenient and fast. But the downside to these types of loans is that they usually come at very high-interest rates. Many start by taking out one payday loan but then they find themselves taking out other payday loans just to pay off the first payday loan. I’ve heard horror stories from people saying they took out $400 and now they have to pay $200 every two weeks without ever putting a dent in the original $400 they borrowed. And so the never-ending payday loan cycle continues. It traps people, and eventually, you give up because you just can’t pay any more. But the fun doesn’t stop there. Now the harassing calls start from collection companies that (illegally by the way) threaten that you can go to jail if you don’t pay up or they tell you that a lawsuit has been filed and you’ll be served or your wages will be garnished if you don’t pay up now!

Fortunately, there may be a way out. In most cases of bankruptcy, payday loans can be completely wiped out and collections efforts stopped, including stopping lawsuits and garnishments. If you’re in the payday loan cycle of debt and you’re looking for a way out, contact us today so we can discuss your options. We’ve helped hundreds of clients with payday loan problems. And bankruptcy is usually less expensive than you think. We also offer payment plans, so fill out the form to the right or give us a call. We offer free in-office or over the phone consultations. You have nothing to lose by reaching out to us today.

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Vohwinkel Law

Vohwinkel law has provided las vegas valley residents superior case results relating to personal injury, bankruptcy, foreclosure and more! Contact us today!