Trapped in a Payday Loan Cycle?
Our Trusted Houston Bankruptcy Attorneys Can Help
Texas is one of only 37 states in the U.S. that allows payday loans. These short-term loans are marketed to individuals who, in theory, need to cover an unexpected expense before their next payday. The truth is, however, is that many of these loans are predatory and enforce alarmingly high interest rates and other fees that trap borrowers in debts and loan cycles that they cannot afford. Many of these payday loan companies even file criminal complaints against borrowers who cannot pay.
If you are in overwhelming payday loan debt and do not know where to turn, we invite you to contact us at Payne & Associates, PC. We have helped provide financial solutions to countless individuals and families who needed an advocate by their side. With more than 15 years of combined experience, our dedicated Houston bankruptcy lawyers know how to assess your circumstances and can make recommendations with the goal of preventing any undue hardship or penalties.
Want to learn more about we can do for you? Contact us today to request a free initial consultation. Our team is standing by.
The Payday Loan Cycle
Because payday loans are supposedly short-term loans, payday loan companies can get away with applying high annual interest rates—many higher than 1000%. When borrowers can't pay, they often renew the loan, which makes them vulnerable to crippling financing fees and traps them in a "cycle" of non-payment and re-borrowing. The Center for Responsible Lending conducted a study that revealed that 76% of payday loans were taken within two weeks of another loan.
What do payday loan numbers typically look like? Here's an example:
- Amount you would like borrow: $300
- Initial lender fee: $60
- Renewal fee (after two weeks): $60
- Total monthly renewal charges: $120
- Total annual renewal charges: $1,560
- Approximate APR: 520%
If you are defaulting on your payday loans, you are not alone: it's estimated that nearly half the people who take them out find that they cannot pay them back. The good news is many of these companies are considered unsecured creditors—meaning that, during a bankruptcy filing, their loans can be wiped out. Our Houston bankruptcy attorney can help you navigate this process, end the threat of legal action, and put you back on a healthy financial trajectory.
A brighter future can be possible. Call our team today to start considering your bankruptcy options.
1. Rebuild Your Credit Score - Fast
Most attorneys simply look at the immediate effects of a bankruptcy. Not us. We go the extra step and make sure a bankruptcy filing benefits our clients for the long-run. This means we are there to help our clients completely rebuild their lives and their credit scores as fast as possible.
2. Monitor Your Credit After Discharge
Your relationship with Payne & Associates does not end after a discharge of debt! Even in the months following a discharge, we carefully monitor your credit and how creditors are dealing with your discharge. In some instances, creditors will not remove everything, but we make sure these violations do not occur or impact your score.
3. Ready to Defend Your Discharge, If Needed
Because we are constantly and proactively looking out for our clients, we stand at the ready to defend your discharge and take action to remove any erroneous information, if necessary. Because we are understanding of the financial pressure you may be under, we will add these services for the same price as a traditional bankruptcy filing.