CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Payday Loans and Bankruptcy

Payday loans are a tempting option for anyone strapped for cash. They seem simple enough: borrow a few hundred dollars to get you through until your next paycheck, which is likely just a few days or weeks away. Pay back the money quickly and there’s very little interest due.

Unfortunately, these loans are designed to seem helpful, but are actually one of the worst financial crutches you can use.

Payday loans are short term loans. Though the fees associated with them might seem reasonable, they are usually exorbitantly high. The trick is in how the fees are presented to you. Lenders claim to charge “only $10” or only “$20” per every $100 you borrow, but this equates to an annual percentage rate of several hundred percent. Some payday loan rates are as high as 2000%.

And these are the rates you pay if you manage to pay the loan back on time – something that is fairly uncommon in the industry. Unpaid loans are “rolled over” into new loans that have interest tacked onto the principal, which enables the lender to charge an even higher amount the next pay period. The longer you go without paying your loan the higher it goes at a rate that makes most people’s heads spin.

Making matters worse, payday lenders tend to be very aggressive when it comes to collections. After all, they stand to lose a lot of money based on the system they’ve created. You’d probably fight hard too for a profit this significant!

Lawmakers have recently begun to take action against predatory payday lenders, but the problem isn’t completely solved. For more information on what’s been done recently, check out this articles from NPR.

How Can You End the Payday Loan Cycle of Debt?

Ideally, you’ll never be tempted by a payday loan. They are issued by unscrupulous lenders and designed to take advantage of someone in a difficult position. If you’re considering a payday loan as an alternative to filing for bankruptcy, think twice and at least speak to a bankruptcy expert before visiting a payday lender.

If you’ve gotten in too deep with payday loans, you have options. Most people are able to eliminate their unsecured debt when they file for bankruptcy, which means many payday loans are discharged. An exception is if you secured your payday loan through fraudulent activity – something that rarely occurs.

Though it might seem easy enough to file for bankruptcy on your own and deal with payday loan debt without hiring an attorney, this is risky. Filing for bankruptcy makes you vulnerable and without proper guidance, your vulnerability can lead to the loss of your assets and financial savings. With the assistance of a bankruptcy attorney, you’re able to protect your assets and eliminate or put a plan in place for your debt, including your payday loans.

If you’ve gotten into trouble with payday loans or you are dealing with any other type of debt that has spiraled out of control, we can help. Contact us at the Law Offices of Robert M. Geller at 813.254.5696 to schedule a free consultation or to begin the bankruptcy process.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Will Filing Bankruptcy Stop Eviction?

Are you struggling with an eviction notice and don’t know where to turn? You may be wondering if filing for...
Read More

Will Filing Bankruptcy Affect My Social Security Disability?

For those who receive Social Security Disability (SSD) benefits, filing for bankruptcy can be a tricky situation. The goal of...
Read More

Will Bankruptcy Affect My Citizenship Application?

Applying for US citizenship can be a long and complex process. One of the factors that the United States Citizenship...
Read More

What Does It Cost to File Bankruptcy in Florida?

If you are considering filing for bankruptcy in Florida, there is a lot to consider. From understanding what type of...
Read More

Why Should You Consider Bankruptcy in 2023?

With the New Year upon us, it’s important to consider all of your options for getting out of debt. Bankruptcy...
Read More

Can You Keep Bankruptcy a Secret?

Considering bankruptcy is a difficult decision, and it can be a lonely one. You may feel like you’re the only...
Read More

How Will Filing for Bankruptcy Affect My Loved Ones?

Filing for bankruptcy is a serious decision and not one that should be taken lightly. You'll likely wonder will bankruptcy...
Read More

Can I Spend Money If I’m Planning to File for Bankruptcy?

When you’re considering filing for bankruptcy, it can be hard to know the right course of action. One of the...
Read More

What to Do Now If You Intend to File for Bankruptcy Next Year

If you intend to file for bankruptcy in the New Year, there are certain steps you must take to ensure...
Read More

5 Lessons You’ll Learn from Filing for Bankruptcy

Looking for a bankruptcy lesson plan? Here are five things you can learn from filing for bankruptcy. Filing for bankruptcy...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions