At first, a payday loan may seem like a quick and easy solution to a temporary money problem. However, at best, these loans are band-aid solutions. At worst, payday loans can actually lead to significant financial problems. Instead of making your money problems easier to deal with, payday loans often make things much worse.
If you are having trouble repaying payday loans, we can help.
Reducing or Eliminating Payday Loan Debt
Payday loan debt can get out of control very quickly. This is because these loans come with very, very high interest rates. It’s not uncommon to see payday lenders charging $20 to borrow $100 for two weeks. This is 20% interest in just two weeks, making payday loans one of the most expensive ways to borrow money! If you can’t repay the loan in two weeks, you’ll be charged interest and fees and these very quickly add up.
If you have taken out payday loans and are having difficulty repaying them, speaking with a licensed professional can help. Contact a member of our team today for more information on how we can help you reduce or eliminate payday loan debt.
One way is to file a consumer proposal or a bankruptcy. These are both legal process that can be administered by a licensed trustee.
In a consumer proposal, you make an offer to your creditors to repay them a portion of what you owe in monthly payments for a specified period of time. The remaining outstanding debt is eliminated once all of your payments are made and the proposal is complete. This process is often a good choice for those who are able to repay some of their debts, but not the full amount.
Bankruptcy is another legal process that may help you. In a bankruptcy, a person is given the chance at a fresh start and most (if not all) of his or her debts are eliminated. This includes payday loans. Speaking with a trustee will help you understand the debt relief options that are available to you and allow you to make a decision on your financial future.
Help with Money Problems
If you are having difficulty paying your bills, you might be tempted to get a payday loan. These loans are offered just about everywhere and they’re quite easy to get. Most lenders don’t require a credit check and they can get money to you very quickly.
However, this convenience comes at a very significant cost. While payday loans are often described as short-term loans to “get you to payday,” the reality is that many people struggle to repay them in two weeks. This leads to very high charges and interest costs which can seriously harm your financial situation. Many people who get into trouble with payday loans are forced to take out additional loans in order to repay their first loans. This is costly, stressful and will eventually lead to serious debt trouble. This is a cycle you do not want to be in. However, if you are, we can help you.
It’s important to note that, if you need to borrow money for a few weeks in order to make ends meet, this is often a symptom of a larger financial issue. Most people who take out payday loans do so in order to have money to pay their bills or to deal with an unexpected expense. If you are unable to meet your financial commitments without going into debt, you may need some help budgeting. If you do not have any savings and thus must turn to debt to pay for an expense, you likely have too much debt or you need assistance with managing your money.
Our team is trained and experienced and can help you. We can provide financial guidance and counselling and can help you understand money management. We can get you more information on the resources that you need. If you have debt troubles and are looking for a way to reduce or eliminate your debt, we can provide you with detailed information on the options that are available to you.
The initial consultation is free, so you can speak with one of our licensed trustees about your financial situation at no cost. Please contact us today for more information.