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Payday Loans Are Getting So Bad that the Missouri Legislature Can't Ignore AnymoreWhile payday loans seem like the fatest way to get some cash, they may not be in your best interest. Instead of being a solution to debt, payday loans are often a cause. Payday loans give you money contingent on a future paycheck--and charge you high interest to do it. They allow you to write a post-dated check but require you to add on a fee for each increment of cash you borrow. For example, if you took out a payday loan for $500, you may be charged $15 per $100 borrowed. So, you'd actually be writing a post-dated check for $575. The works out to an interest rate that is sometimes as high as 300% to 400%. Statistics have shown that payday loans sink you farther into debt faster than you'd ever expect. It isn't a surprise that Missouri's legislators are taking a look at the ethics of payday loans. A recent bill proposed to Missouri's congress suggests more time to pay the loans back and a low cap on the interest rates. The Financial Institutions Committee entertained arguments from representatives of the payday loan industry but the fate of the bill has yet to be determined. Payday loans aren't a good option for anyone, really. If you don't pay the loan back on time, the interest rate raises dramatically. Many find themsleves never able to get caught up. You don't want to find yourself in a place where a payday loan is the only way you can survive. How can you do that? Begin by opening a bank account, maybe with a credit union, that you take good care of. Life is full of unexpected turns and having an account or an emergency fund could keep you from becoming another victim of the payday loan. If you don't have any other option, it might be a sign that you are in financial trouble. Regrettably, your debt doesn't just go away if you pretend that it isn't there. Missouri and Illinois Chapter 7 bankruptcy can actually eliminate your debt and stop the vicious cycle to allow you to get a fresh start. Nevertheless, bankruptcy may not be the best option for you. You can really only know which solution is best for you if you first learn about your options. Begin educating yourself with free information you can find on websites and handouts. All kinds of attorneys offer free consultations but the great bankruptcy attorneys in your area will want to load you with free information before you even step into his or her office. More informationMissouri Bankruptcy attorney James Brown has been working to relieve the debt of hard-working American families for over 15 years. He has dedicated his career to educating consumers about options for debt relief and has released 5 publications, including, "Get Out of Debt: Secrets Your Creditors Don't Want You to Know." You can request a free copy at http://www.castlelaw.net |