Often, many of my clients who are looking into bankruptcy have had bad experiences with payday loans in Centennial, Littleton, and Aurora. They wish they knew about the dangers of payday loans before their finances were damaged by them. Let’s take a look at this type of loan, and how it can be harmful in the long run.
Payday loans can be harmful in the long run.
What is a Payday Loan?
A payday loan is a small amount of money which is borrowed with a high interest rate. The loan agreement states that the money will be repaid when the borrower receivers their next paycheck. The reason so many people get payday loans, is to make ends meet before they get their paycheck. If you often use payday loans, you need to reevaluate your finances, as this is a sign of financial trouble. Filing for bankruptcy can get you a fresh start so you can stop living paycheck to paycheck.
Are all Payday Loans Legitimate?
Some payday loans are legitimate, while others are scams. It’s important to understand the difference between the two so you don’t end up in more financial trouble. Here are a few facts about these types of loans in Highlands Ranch, Lone Tree, and Parker:
- Identity Theft a Possibility: Applying for a payday loans opens you up to possible identity theft. Often, people apply for these loans online, and you will be required to provide your social security number and other private information. If your identity is stolen after you applied for a payday loan, contact the police immediately. Also, file a report with the Federal Trade Commission as soon as possible.
- Inability to Seek Legal Action: If you are taken in by a payday loan scam, you may be unable to seek legal action. Many payday loan companies are incorporated in South and Central America, making it extremely difficult to seek compensation for the violation of your rights.
- In the States, but Unable to Seek Legal Action: Another common problem with payday loans, is that many of them are held by various Indian tribes. These tribes are exempt from Federal Laws, so if they violate your rights, you will have a hard time seeking legal action.
Are Payday Loans a Part of Your Life? How a Bankruptcy Lawyer Can Help
If getting payday loans is a normal part of your life, it might be time to consider filing for Chapter 7 or Chapter 13 bankruptcy. With high interest and excessive default provisions, they make it impossible to get ahead. Bankruptcy is a legal right which allows you to liquidate your debt and get a fresh financial start. Stop the stress and worry of living from paycheck to paycheck, worrying about payday loan scams, and putting up with harassing debt collection calls. Contact me for a free bankruptcy consultation today, and we’ll discuss your options. I have been a bankruptcy attorney for over 20 years, and have successfully helped hundreds of families overcome overwhelming debt by filing for bankruptcy.
If you are living paycheck to paycheck and commonly use payday loans, contact experienced bankruptcy attorney Barry Arrington for a free bankruptcy consultation at 303-205-7870.
Tom Knox is an American businessman and politician. He was second in the Democratic nomination for Mayor of Philadelphia on May 15, 2007. He is notable for his pledge to spend up to fifteen million dollars of his own money in the race. After considering a run in 2008 for state treasurer, Knox announced his entry into the 2010 Pennsylvania...