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Payday loans can lead to a spiral of overwhelming debt

| Oct 2, 2020 | Uncategorized

Most people face financial hardship at some point in their lives. While some are fortunate enough to make it through these trying times, others find themselves in a constant struggle to stay afloat. Those who fall into the latter category often have to seek out whatever means they can to survive. While this might mean using credit cards or turning to family and friends for personal loans, a lot of people end up approaching businesses for payday loans.

The dangers of payday loans

Payday loans are meant to be short-term loans that bridge the financial gap between paychecks when individuals find themselves short on case. The intent is for these loans to be paid off when the borrower gets paid, but it’s rarely that easy. There are many reasons why these loans pose a threat to borrowers, but one of the chief amongst them is a triple-digit interest rate. Although that might not sound like much on a short-term loan of a small amount, the fact of the matter is that many borrowers are unable to repay their payday loans.

When they’re unable to pay, they are left with the option to face legal action for collection, extend the term of the loan, or simply get a new loan that pays off the old one. None of these options are great, and each has it’s own ramifications. Generating a new loan can lead to more fees, while extending the term of a loan can lead to even more interest accumulating. In short, it doesn’t take long for payday loan debt to get out of hand, leaving you overwhelmed and not knowing where to turn for help.

Don’t let payday loans ruin your life

Struggling week-after-week, month-after-month, and year-after-year to get ahead of your debt is stressful, but it’s also unnecessary. If you find yourself overwhelmed with debt, then you might want to consider filing for bankruptcy. A successful personal bankruptcy can quickly rid you of much, if not all, of your debt, which can free you up to refocus your attention on the things that really matter in life. So, if you’re ready to ditch your debt and obtain a fresh start, it might be time to speak with an attorney.

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