When they hunt, predators don’t look for strong or healthy prey — they seek out easy, unsuspecting victims. This is true both in the animal world and in the financial world. When times get tough, unscrupulous lenders promise easy money in the form of payday loans to people who are in trouble. A payday loan might seem like an easy short-term solution. However, it will give a financial predator an opportunity to sink its teeth into you, and you will be in worse trouble than before.
A payday loan is easy to get. All you usually have to do is show the lender your pay stubs to prove you have an income. Payday loans, though, often come with extremely high fees, sometimes up to 30% of the loan. For example, say your paycheck is $1,500, and you borrow $300. When you get paid again, the lender takes back the $300 plus a fee of up to $90 so that only $1,110 remains. Most likely, that $390 shortfall will leave you with not enough money to pay for all of your expenses. Therefore, you are forced to go back to the payday lender and get another loan, and your debts can quickly spiral out of control.
If you are in financial trouble, don’t go to a predator. Find someone who wants to help you, such as a financial counselor. Sometimes, though, not even a financial counselor can help, and you need the services of an experienced Minnesota bankruptcy attorney. Unlike the payday loan predators, a bankruptcy lawyer can help put an end to the cycle of borrowing and debt. At Behm Law Group, we specialize in assisting people through their financial troubles. Bankruptcy is our specialty, customer service is our passion. Give us a call and see how we can help.