Consumer counseling credit card consolidating debt
There is a myth out there that you can’t include payday loans in a bankruptcy.
That’s how the 12 million Americans who take out payday loans each year usually feel.Getting out of payday loan debt can seem daunting, but it’s worth the effort and hard work.Taking control of your finances—and actually being able to plan for the future—is a reward worth striving for.Companies like Max Lend, RISE Credit, and Cash Max have made an art out of providing high-interest loans to people who feel desperate and out of options.The very structure of payday loans is set up to keep people on the hook.Here’s a breakdown of what payday loan debt looks like, according to the Pew Charitable Trusts: As with any other loan, if you default on a payday loan, it can result in growing fees, penalties, and possible legal action.
Because many payday loans use automatic debit payments to take funds directly out of a bank or prepaid account, you can also end up with overdraft fees on top of everything else.
“It’s not a traditional loan with set guidelines in terms of how they work with us,” explains Fox.
In spite of those challenges, there are things a credit counseling agency can do to help you get out of payday loan debt: Nobody wants to resort to this option, but sometimes it’s the only way to get out from under this kind of debt.
Another unsubstantiated claim is that you may be charged with fraud or arrested if you can’t pay a payday loan back or if you try to discharge the loan.
One of the reasons this fear is so widespread is that payday loan debt collection scammers often make these kinds of threats, despite the fact that these threats are illegal.
After you get out of payday loan debt, you want to make sure you never go to a payday lender again.