As if we needed more data, a Pew survey indicates that payday loans fail to help people as they advertise they will. Payday loans tend to prey on the people with the least financial resources, and trap those people in a cycle of debt. If you are facing financial troubles and do not see a way out, bankruptcy may be able to help. Before using one of these high interest services, sit down for a free consultation with a St. Louis bankruptcy attorney to discuss your specific financial circumstances.
According to the report, about 12 million people take out payday loans each year in an attempt to alleviate difficult financial situations. These loans are often packaged as being short term loans that a person will pay back within a month; the reality is that the average payday lender ends up being indebted for 5 months, paying $520 in finance charges for an average loan of $375.
Some of the most important facts from the survey include:
• 58 percent of payday loan debtors have persistent financial problems
• Just 14 percent say that they can repay the loan on their monthly budget
• 78 percent rely on information about the loan from the lender without seeking outside information
• While payday loans are often marketed as an alternative to overdrafting on a bank account, many lenders end up taking the loan and overdrafting
• Many borrowers end up using the same resources that they were trying to avoid using to pay off the loan. These resources include help from family and friends, selling off personal items, taking out another loan, or using a tax refund
• Borrowers support increased regulation of payday loans by a margin of 3 to 1
Contact a St. Louis bankruptcy attorney for a free consultation
Before you seek the help of any short term lenders, you should consult with an experienced bankruptcy attorney. Bankruptcy may be able to help you reduce or even eliminate your debts. The Westbrook law group practices exclusively in the area of bankruptcy law and is committed to assisting consumers who are having financial problems. To schedule a free consultation, call us today at (636) 493-9231. If you would prefer to email, please contact us through our online contact form available on the right side of this page.
Hello, everyone. Thank you so much for joining us on “This needs to be said”. Our friend, attorney Brent Westbrook is here today to