When you’re living paycheck to paycheck, it can be tempting to explore payday loans. These loans are essentially cash advances. However, they are illegal in North Carolina, and for good reason:
- Payday lenders are notorious for taking advantage of people in difficult financial circumstances.
- They charge predatory interest rates — sometimes up to 750 percent per annum.
- Additionally, they often charge steep rates for issuing and extending the loan.
By the time you actually pay off the loan (if ever), you will have spent five or more times the initial loan amount.
Other Types Of Personal Loans
Banks, credit unions and other financial institutions offer personal loans with more reasonable terms and interest rates. These loans are unsecured, meaning the bank can’t come after your property to get paid. However, they can still affect your credit. If you fail to pay them back, you may struggle not only with poor credit, but also with a constant barrage of phone calls and emails from collection agencies.
Getting Out Of Debt
Relying on personal loans, credit cards or payday loans to make ends meet can put you in a far worse place than where you began. Fortunately, it’s never too late to explore your options for getting out of debt.
When you speak with one of our lawyers at Wootton & Wootton, P.C., you will learn how bankruptcy can wipe away these debts, giving you a fresh start. Bankruptcy will also stop creditor harassment and other collection efforts.