Payday loans? Title loans? Don’t fall into these traps

On Behalf of | Feb 12, 2021 | Chapter 7

Money crunches happen all the time, and it can be exceptionally difficult to navigate one major financial crunch after another.

When the bills keep coming in faster than your money can keep up, where do you turn? If you’re like many, you may go either the payday loan route or get a title loan on your car — which is an absolutely terrible direction to go.

Why payday and car title loans are awful

Both offer basically the same allure — and trap — for the unwary (and desperate) consumer: They’re easy to get, your credit doesn’t matter and the money is in your hands almost immediately. However, they’re also expensive and can trap you in an endless cycle of debt when the bill comes due.

Most people who resort to these types of loans are living paycheck-to-paycheck. If your paycheck can’t cover an emergency this month, the odds are high it won’t be able to pay off that loan next month, either.

People sometimes find themselves floating multiple payday loans from different lenders so they can pay one with a loan from another. Car title loans may be even worse: Fail to pay up, and your vehicle gets repossessed.

Why you may want to look for a better solution

If you’re in this position, it may be time to look for alternative solutions. The best option may be bankruptcy. It’s designed to give working people and others who have gotten into impossible financial situations a chance to start over.

Find out more about your options and our services by continuing to review our site for more information.