Payday loans are incredibly dangerous. If you have taken out one payday loan, you have taken out one too many. Over the past few years, our firm has seen a consistent increase in the number of clients who were caught up in an ever-increasing payday loan cycle they could not break.
Although the government has put restrictions on the amount lenders can charge for payday loans, the charges and interest rates remain substantial. Currently a payday loan company can charge up to fifteen dollars in fees for every one hundred dollars you borrow. It may not sound like much, but it quickly becomes crippling, and the long-term consequences and costs to your budget and financial well-being are severe.
Payday loans are a slippery slope, because as you pay more money in fees and interest, you become short on funds required to meet your everyday expenses and you resort to payday loans more frequently. As the cycle continues, the amount of the payday loan required may increase or you may need to find additional payday loan lenders. The cost of payday loans is compounded by the fact that you pay their fees with after-tax dollars, and therefore you have less disposable income available to break the payday loan cycle on your own.
To deal with the ongoing stress of payday loans, it is best to seek the guidance and advice of a Licensed Insolvency Trustee. A bankruptcy filing or a proposal made under the Bankruptcy and Insolvency Act will provide immediate relief from the payday loan cycle. A Licensed Insolvency Trustee will apply experience and knowledge of Bankruptcy and Insolvency legislation to assess your situation and provide you with options to allow you a fresh start.
If you need immediate relief from your payday loans or an unmanageable debt load, call us today. Our associates will listen to you, review options with you, and explain to you how we can help you break the cycle of payday loans.
Let’s start solving your problems today!