Payday loans cost more than you may think

14 - Feb - 2018
Credit Card Debt

Avoid Speedy Payday loans

Payday loan stores have become more prevalent on TV ads, radio, print, billboards and internet.  You’ll find them in every major city, especially in areas of lower income populations.  The idea of speedy cash is tempting, especially to those who desperately need help. But this quick access to gain early access to paycheck funds is a desperate move that often has long-term negative consequences.  The biggest problem is the cycle that is very difficult to break once started.

Although cash loan laws are governed by the states, it doesn’t mean that they’re affordable, or fair.  As a matter of fact, Wisconsin is a state that has far more freedom for lenders to determine APR fees. It’s a fact that payday loan fees are high to begin with. Because Wisconsin lenders can charge you more which means that they are likely to do so. Before you go to a payday loan store for cash in advance, really evaluate how much interest will need to be paid back. For example, if you receive a $500 cash loan but have to pay an additional $600+ back in finances charges, you’re paying more than double for your own money. This may sound crazy, but this is actually a common scenario. It’s not uncommon for someone to get so caught up in the borrowing cycle that they cannot repay what is due.

Car title loans are modeled after payday loan and are just as dangerous. Employment is not always required. They make the application process so simple, even offering it all to be done online. When you default on a car title loan, you will lose your vehicle. When you don’t pay back your loans, the lends will come for you. Ultimately, the cycle of unpaid payday loans can lead to losing everything. Don’t let this happen to you.

Bankruptcy vs Payday Loans

A bankruptcy solution to debt problems resolves financial problems and in some cases can even eliminate debt completely.  This is much different than the result you get from using payday loans. It is true that there are pros and cons to bankruptcy, and it’s not for everyone. However, if you are a candidate for bankruptcy, it can give you a fresh start. Don’t fall victim to payday loans and myths about bankruptcy. Your Wisconsin neighbors are using bankruptcy. Get the facts to see how it may benefit you and your family.

If you find yourself stuck in cycle of payday loan debt, find some relief in the knowledge that even these loans can be discharged in bankruptcy. Contact a local bankruptcy law firm, experienced in Wisconsin bankruptcy laws and also knowledgeable regarding payday loans. Debt Advisors Law Offices has 7 office locations, and ranked #1 Bankruptcy Attorney since 2012.  At Debt Advisors your first consultation is free. No strings attached. You can walk away if it’s not for you. Get the facts. Start by filling out the short online form found on this website or call our law firm directly at (888) 660-5413

 Submit a Payday loan complaint to the  CFPB

File Lawsuit Against Creditor who is Harassing You

More about Payday Loans

Payday loans are a source of credit for many Americans who live from paycheck to paycheck. Fees for the loan are based upon the lender, the amount borrowed, and how quickly the balance is paid back. For direct deposit and direct payments, you must provide the store access to your checking account.  Some people who use quick cash services may not have access to credit cards, or have a financial institution to deposit funds from paychecks. For these people, quick loans may offer necessary and temporary financial services to cash their paychecks. But for the most part, the appeal of cash advance stores is that they provide a quick and easy solution to what may be a deeper and more complex financial problem.

Payday stores represent themselves with a variety of brand names, but they all have one thing in common; they cash paychecks or provide drafts or money orders for a fee based on APR rates.  A payday loan or “check loan,” can be a short-term loan that is due back on your next payday. Or, a payday loan can be a longer-term loan with high APR fees which is paid back over a period of multiple payments. If the amount due is paid in full, and on time, the borrowers is down by the amount of interest charges.  If it’s not paid, additional charges continue to build each day.

Before taking out a payday loan, consider exploring other options that may be more beneficial in the long run. One option to consider is looking into ways to pay off your balances, which can help you reduce your overall debt. Additionally, the Debt Advisors website offers a wealth of resources and information that can help you make informed decisions about your financial future. For example, you may find it helpful to learn about the gift of living debt-free and how it can improve your quality of life. Furthermore, the website provides advice for young and inexperienced individuals living in the red, as well as tips on how to stop wage garnishments in Wisconsin. All of these resources can be valuable tools in helping you avoid the pitfalls of payday loans and work towards a debt-free future.

At first, borrowing money from a payday store may seem harmless. After all, they are just business that provides services for a profit. But ask yourself, “shouldn’t profit making be fairly aligned to the services provided and not take advantage of those people who need the most help?” If you answer “yes” to this question then maybe cash in advance is not the best option for you. Make certain that you are being treated fairly. Get the facts about what options are available to help get you out of debt. Lastly, don’t forget that quick access to cash is truly a difficult cycle to break and can also lead to other services that are more predatory in nature. Don’t further contribute to the cycle of accumulation of debt. Ask Debt Advisors in Kenosha how to get debt free.

Related Blog

Impact of Inheritance on Bankruptcy Proceedings

Impact of Inheritance on Bankruptcy Proceedings

When it comes to bankruptcy, the arrival of inherited assets can be a game-changer. This windfall might initially seem like a lifeline for those facing financial turmoil. However, it’s imperativ..

Bankruptcy and Military Members: What to Know

Bankruptcy and Military Members: What to Know

Presently, a significant portion of the population faces financial hardships monthly as the lingering impact of the economic downturn gradually recedes from sight. A few individuals in the United Stat..


One-on-one Attention

Make the Right Choice