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Beware of how payday loans can affect your finances
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Beware of how payday loans can affect your finances

| Aug 19, 2020 | Firm News

It’s not uncommon for Floridians to fall on hard financial times, especially in today’s world. The sudden loss of a job, the unexpected onset of a medical condition, and even expensive repairs to your home or vehicle can make it tough to make ends meet. Many people who find themselves in this situation struggle to find a way to get by. Far too often, though, these efforts only lead to more financial hardship.

The dangers of payday loans

One way some people get by is by turning to payday loans. These loans, which are meant to be short-term, can carry interest rates that can easily reach triple digits. Some loans have interest rates that are as high as 400%. What ends up happening in a lot of cases is that these short-term loans end up becoming longer-term as the loan’s term is extended due to an inability to repay so quickly. As a result, many individuals who take out payday loans actually end up falling deeper into debt.

What should you do?

First of all, you should try to avoid these loans if at all possible. Try seeking out other loan options, even if that means borrowing from family and friends. If that’s not an option or your debt has simply become unmanageable, then you might want to start considering personal bankruptcy. If successful on a bankruptcy petition, you might be able shed most, if not all, of your debt. This can give you the fresh financial start you need, setting the stage for a new chapter in life that is much less stressful.

Don’t be afraid of bankruptcy

A lot of people think that bankruptcy will leave them with nothing, thereby making life post-bankruptcy just as difficult. This simply isn’t the case. While bankruptcy might hurt your credit score and require you to sell some assets, you can utilize bankruptcy exemptions to keep a fair amount of property and you can take certain steps to rebuild your credit. So, if you’re struggling with payday loans or other forms of debt, the time to consider securing real financial relief is now.