Beware of Loan Sharks

Last week was Discovery Channel’s Shark Week. Protests held nationwide demanding check advance and payday loan reform. A variety of picket signs displayed sayings from “Beware of PayDay Loan Predators to “Shark Week 2014 Stop Payday Loan Sharks.”

A check advance loan generally is a high interest short term loan. Many providers require bank account information or payroll information for the loan to be approved.

If the short term loan is not paid, interest rates ranging from 30% to as high as 400%. Interest accrues and collection calls start. Your payroll department can be called to start voluntary withdrawals. If you are not working, your bank will process payment withdrawals. More often than not, you are left a negative bank balance and high bank fees.

It is easy to fall into a cycle where you borrow a payday loan and in order to pay it, you take out another one. You’re stuck in a vicious circle feeling like there is no way out. The great news is in majority of cases, bankruptcy can discharge your payday loan debt.

Do not let your fear of bankruptcy be the reason not to go back in the water. Bankruptcy can eliminate not only the payday loan debt but other unsecured like credit cards and medical bills. If you are choosing between buying groceries and paying the payday loan, please call Peter Francis Geraci and Geraci Law.

Author: Elizabeth Doren Paralegal at Geraci Law L.L.C.

I am a paralegal at Geraci Law L.L.C. (the greatest consumer bankruptcy law firm that ever was or will be!) I talk to thousands of people who are struggling financially. They call because they know Peter Francis Geraci and Geraci Law staff help people through very difficult times. I write about the things I read in the news, hear from clients and general information about debt and bankruptcy I find interesting.