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Payday Loans Help in California

Everybody knows that unexpected expenses have a way of popping up when you can least afford them. Whether your car finally gave out or the kids need braces, finding the cash for that sudden large expense can be tricky. If you’re one of the millions of folks living paycheck-to-paycheck, these bumps in the road look like mountains.

If you need a little extra money from time-to-time, you might consider turning to payday loans to help pay your family’s expenses. But while these loans might seem like a convenient way to get caught up on your bills, in reality, they are nothing more than traps set by predatory lenders.

For millions of Americans, payday loans quickly turn short-term needs into a financial death spiral. These loans might give you the money you need to pay this month’s bills, but what about the next month’s? You need to address the underlying source of your money troubles: you aren’t bringing home to stay current with your bills.

Call or text DebtStoppers today at 323-916-8660 to schedule a free bankruptcy consultation with one of our experienced California attorneys. We will help you use bankruptcy laws to wipe out your debts, so you’ll never need to go to a payday lender again.

What Are California’s Laws for Payday Loans?

Payday loans are low-dollar high-interest paycheck advances that come at a much higher price than you might expect. Typically, borrowers will give the lender a post-dated check or electronic bank transfer authorization to receive cash on-the-spot. California legal regulations limit the terms of these loans to 31 days, but the length is frequently 14 days, or until the date you receive your next paycheck.

California laws include some additional limitations on payday loans, including:

  • Borrowing is restricted to $300 per loan, not including fees.
  • Borrowers are limited to one outstanding payday loan at a time.
  • Upfront interest fees are capped at $45, which is nearly a 500% interest rate.
  • Interest rates on overdue balances are limited to 15%.

What is the Statute of Limitations in California?

The statute of limitations on payday loans under California laws is 4 years. This means that if you don’t pay back what you borrow, the lender has 4 years to sue you to recover the balance. If they don’t initiate a lawsuit by the expiration of the statute of limitations, they won’t be able to recover. Sadly, lenders will never let your balance go unpaid for this long.

Should I Get a Repayment Plan?

If you can’t pay back your loan in time, you can ask the lender for an extended payment plan. Even if they agree to give you one, it won’t solve your money problems. The real source of your troubles is all of the other debts that sent you to a payday lender in the first place.

Our Experienced Los Angeles, California Attorneys Can Help

When every unexpected expense sends your financial situation spiraling out of control, you have bigger problems than payday loans can fix. Call or text DebStoppers today at 323-916-8660 and let our skilled California lawyers help your family find true debt relief through bankruptcy laws.

Bankruptcy laws exist to help American families get out of the debt that’s destroying their lives! Call or text DebtStoppers California at 323-916-8660 to learn more about the comprehensive debt solutions we offer.