Are you living paycheck to paycheck? Many people are in the difficult position of living from paycheck to paycheck because they only have enough income to pay for their basic living expenses. When an emergency happens, they do not have the resources to cover the emergency costs or when an unexpected expense comes up, they do not have the money until their next paycheck.
Payday loans are an attractive solution in these types of situations because they allow the person to “borrow” from their upcoming paycheck. Unfortunately, payday loans are also one of the worse ways to borrow money.
Using Payday Loans Becomes a Habit
Companies that offer payday loans want repeat customers. Payday loans have extremely high interest rates and fees. Companies want customers to come back repeatedly for payday loans because they can make more money by taking advantage of families who are in desperate need and who are already struggling financially. It only takes a couple of times using payday loans for them to become a habit.
Unfortunately, using payday loans repeatedly creates a cycle of dependence that causes the person to spend his or her paycheck before they receive it. Not only is the person spending money that has not yet been received, the person is “paying” a high price for that money through interest and fees. If you who have been lured into this destructive financial cycle, there is hope. Bankruptcy can resolve your financial problems so that you can get a fresh start. You can find the relief you need to make your financial situation more manageable.
Bankruptcy Can Discharge Payday Loans
If you read the fine print of payday loan applications, many of them specifically state that the debt is not dischargeable in bankruptcy. In most cases, this is simply a scare tactic used by the payday loan company to discourage people from seeking advice from an experienced bankruptcy attorney. Do not let this tactic discourage you from seeking bankruptcy assistance. With very few exceptions, payday loans are dischargeable through bankruptcy.
Bankruptcy is a way to break the cycle of payday loans so that you can get back on your feet. Your bankruptcy case also discharges credit card debt, medical bills, personal loans and other debts that are making it impossible for you to pay your living expenses without borrowing against your future paychecks. If you are struggling to pay debts and find yourself using payday loans as a means of surviving from paycheck to paycheck, contact our office for a free bankruptcy consultation. You are under no obligation. We only want to help you solve your debt problems in the way that is most beneficial to you and your family.
Contact an Experienced Mount Holly Bankruptcy Attorney
Personal Approach, Professional Service, Affordable Payment Plans
The Law Office of Travis J. Richards, LLC is a full-service Mount Holly bankruptcy law firm focused on Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, debt consolidation, credit repair, tax liens, student loans and foreclosure. We represent clients in Burlington County and throughout South Jersey.
Contact our office at 609-267-5297 to schedule your free consultation to discuss bankruptcy and non-bankruptcy alternatives. You may also use our convenient online contact form and one of our friendly, professional staff members will contact you to answer your bankruptcy questions and/or schedule a free consultation with Travis J. Richards.
Image credit: Taber Andrew Bain
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