As the economy continues to falter, news sources are reporting that more and more families are using payday loans to survive. I consider bankruptcy attorneys in the trenches of the economy and quite frankly, as a bankruptcy attorney, I could have told you that payday loan use is on the rise. When I first started practicing bankruptcy law in Waco, Texas, I rarely saw potential clients complaining about payday loans. Over the past few months, it has been a regular phenomenon. And payday loans, with their high interest rates and automatic drafts from your bank account, will break you. You end up in a terrible cycle.
The cycle goes like this. Most Americans are living paycheck to paycheck without any real savings. They have an emergency and the credit cards are maxed. So, they get a payday loan. They plan to pay it back the first time it comes up for renewal. However, statistics show that approximately 1/5 of the loans are paid back in the first month. So, you renew it or take out another payday loan to pay it back. Meanwhile, the payday loans are taking their payments directly out of your bank account. You don’t have enough money to pay for rent, car payments, and other bills. I see potential clients on a regular basis who are about to lose their homes because they don’t have enough money to pay the mortgage after the payday loans are done with their bank drafts.
You don’t have to continue in this cycle. Explore your options with experienced, compassionate staff. Call 254-870-0105 or email me at [email protected] today for a free, no-obligation consultation. Let my family help yours!