Payday loans can wreak havoc on your finances. These high-interest loans are insidiously destructive because they tend to affect the people who have the least amount of money to spare.
People desperate for a couple hundred dollars extra to get them through the week might be tempted to go to a payday loan provider. This company will offer an advance on the person’s upcoming paycheck. Although it might help the person get through a rough patch financially, it might ensnare the person into a cycle of debt, where they have to return every couple of weeks for another payday loan to get them through the week. If the cycle continues, the person might not be able to pay the loan anymore, and then the interest, penalties and fees will become exceedingly unbearable.
If you can’t pay your payday loans, the payday loan provider might start to threaten you with legal action. Sometimes, they’ll even threaten that you’ll have to go to jail. This is absolutely false. You could face legal action that could result in inconvenient wage garnishment, but you will not have to go to jail over failure to pay your loan payments.
Are you being threatened by a payday loan company or wage garnishment over unpaid debts? You might be able to file for bankruptcy or pursue another debt resolution strategy to get yourself out of financial trouble. At the Law Office of Ruth Nelson, our legal team is available to help King County residents review the legal options to get them back on sturdy financial feet again.