Avoid payday loans. Avoid them completely and absolutely. It doesn’t matter how broke you are or how desperately you need immediate cash. Payday loans are also called “cash advances.” They are short-term loans, usually for $500 or less, so you might think that it’s not a big deal. It is. The interest rates are egregiously exorbitant. Payday loans are usually made to the borrowers who least can afford them – people with poor credit who can’t get a loan on better terms. If you’re even thinking about a payday loan, you are probably in deep financial difficulty already. Instead of a payday loan, in the Dallas-Fort Worth area, get reliable legal and financial advice by consulting as quickly as possible with an experienced Dallas bankruptcy lawyer.
Most of the people receiving payday loans extend the loan a number of times. In the end, they often pay more in fees than they borrowed to begin the process, which works this way. Let’s say you need immediate cash, but payday is still a week or two away. Payday lenders ask you to write a check that’s dated for your payday. In return for the check, the lender gives you cash minus the interest. When your payday arrives, the lender adds additional interest if you want to “roll over” the loan for another pay period, and this can continue – in some cases – for months. According to the Consumer Financial Protection Bureau, only about 15 percent of payday loan borrowers are able to repay all of their payday loans on time without rolling over the loans.
Talk To A Dallas Bankruptcy Lawyer
Payday loans are no way to deal with rising debt obligations. In fact, a payday loan is almost always a path to even more debt. Bankruptcy is not necessarily right for everyone either. It may or may not be right for you. If your debts are overwhelming you, take the opportunity to discuss bankruptcy and your other legal options with someone who can genuinely help you. In the Dallas-Fort Worth area, review your alternatives with an experienced Dallas bankruptcy lawyer who can make the recommendations that are in your best long-term interests. If your debts are mounting, make the call immediately.