WARNING: Pay day loans are like legal loan sharks.

 

Lately, pay day loans have been the common reason people find themselves in need of a bankruptcy.    Typically the story is the same, life happens and someone needs money quick.  They can’t use their credit card because they are maxed out.  Their only other option is a pay day loan.  They are warned about the compounding interest but they think they can pay it off shortly before it gets bad so they get the loan.  Unfortunately the next month comes and they can’t pay it off so they think the next month.  Before they realize it, only a few months has gone by but they are facing a 200% interest rate!  It’s no wonder they come see me after that.  Can you imagine trying to pay off a 200% interest loan?  It’s impossible.  This is why I want to warn people about getting a pay day loan.  It’s just not worth it.   If you find yourself in a situation where you need to get one, please come talk to me before you do.

 

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