subject: Payday Loans Need Reform According To Missouri Legislature [print this page] Payday loans seem like an easy option if you are strapped for cash. Unfortunately, they are more trouble than they are worth and often leave people in more debt than they were in before.
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. The interest rate only gets higher if you don't pay the loan back by the deadline. 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.
You can start your research and education with free information from reputable attorneys in your area. 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.
