How Do Payday Loans Work?
One of the worst kinds of debts out there that debtors can obtain, is that of the payday loans. So why are payday loans so bad? Well for starters they may be able to charge you interest at an annual percentage rate of 1900%! Although most people take out loans with the intention of paying off their loan for on their next pay date, the payday loan companies are banking on that you will not need to make that payment. In fact they are betting on you having to take out an additional loan in order to cover the first loan. As Sara Silverman says in the video above, if you are thinking about obtaining a payday loan you should stop yourself and do anything else.
Payday loan companies are some of the most unregulated businesses out there and they are not trying to help you out and you will end up digging a hole for your self that you may not be able to recover from which may force you into filing for bankruptcy. The good news is that payday loans are dischargeable in bankruptcy, but don’t make the payday loan the reason for having to file for bankruptcy.
Also debtors should know that payday loan companies can be found locally in the Seattle metro area as well as online. The online companies you really have to watch out for as they are not bound by the laws of the United States and have been known to harass my clients even after they have filed for bankruptcy because they are overseas or on some foreign island where they won’t be subjected to U.S. law. Further I have even had former bankruptcy clients complain that they are being harassed by debt collectors who claim they owe a debt, but in fact this debt would have been discharged in the bankruptcy. These companies turned out to be scams and I can only imagine these people data was compromised from an overseas payday loan company. If you have to do it, take out the loan with a local company, but any payday loan is not advisable.
If you have additional questions regarding payday loan debt, give Symmes Law Group a call at 206-682-7975 to learn about your options.