Payday loans are not good for you. People who take out payday loans are 7 times more likely to file for bankruptcy than those who don’t. Yet each year 10 million American families take out payday loans often at a 450% yearly interest rate.
In a report “Do Payday Loans Cause Bankruptcy?”, Vanderbilt Law School’s Paige Marta Skiba and Jeremy Tobacman from the University of Pennsylvania have found that the answer to the question is a “resounding yes”. They found a clear correlation between payday loans and bankruptcy. Approved first-time payday loan applicants experience a 90 percent increase in bankruptcy filing rates, according to the study.
If you find that you are thinking about getting a payday loan, do yourself a favor and see an experienced bankruptcy lawyer. Why? Because you are beginning to dig yourself into a hole which you may not be able to get out of. Before you dig yourself in too deeply, get advice from someone with the experience of helping others in similar situations.
