Payday Loan Debt


Payday loan debt is a problem.  It is a big problem.  And as the payday loan industry rivals fast food restaurants in numbers, the problem is growing.  Payday loans are loans borrowed against your paycheck.  They can be taken against any postdated check you write.  A borrower goes into a payday loan business and writes a postdated check for $350.  In return, the customer gets maybe $300 in return.  That’s on a good day.  If the postdated check does not clear when promised, interest begins to accrue.  Big time.  Average payday loan interest rates are around 450%.  On top of the cut the business gets making the loan in the first place, it spells ripoff.

payday loan debtBut payday loan debt ripoff is a price, literally, people are willing to pay.  To get over a hump. To handle an unexpected bill.  Coping with a temporary income loss.  All are examples leading people to payday lenders.  It is true in Sacramento, as this Sacramento Bee story points out, and it is true elsewhere.  Seemingly, it has become a necessary evil for many in today’s world.

Perhaps the economy is not as good as portrayed.  Maybe it’s that incomes have not kept up with costs.  Whatever the reason, payday loan debt is likely here to stay.  But must they do as they do?  By their very nature, payday loans are predatory.  They have carved out an exception to what once once known as usury, supposedly as an allowance to cater to low-income borrowers.  But everyone pays the same.  No matter how you slice it, though, they are bad deals.  Online lenders are even worse.

Can you eliminate payday loan debt in Sacramento?  Yes, whether you live in Sacramento or somewhere else, payday loan debt can be eliminated in a bankruptcy.  If you owe debts from payday loans, and you don’t see a way out, bankruptcy may be your solution.  Contact me through to evaluate your options.  Its a free consultation, so you only have your payday loan debt to lose. Contact me for a free consultation.


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