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Payday Loans Help in Georgia

Everyone has unexpected expenses that pop up from time to time. Whether your car breaks down or your kid suddenly needs braces, coming up with the cash to pay an extra bill can be tricky. If you're one of the millions of Americans who are living paycheck to paycheck, these little bumps in the road can seem more like mountains.

Some people turn to payday loans to get them over these obstacles. While the concept seems harmless (or even helpful!), these predatory lenders have set a trap of high-interest rates, fees, and ever-increasing balances. If you've been caught in this trap and are in over your head in debt from payday loans, DebtStoppers can get your freedom back. Call or text us today at 678-673-2142 to request a free personal debt assessment with one of our experienced Georgia bankruptcy attorneys.

How the Payday Loan Trap Works

Payday loans are small-dollar, high-interest cash advances that come at much too high a cost. When you take out an advance on your paycheck from one of these predatory lenders, you either write them a post-dated check or sign an electronic bank transfer authorization form for a future date. Usually, this date is whenever you get your next paycheck, which is how payday loans get their name.

The lender will then give you cash on-the-spot for the check's amount, minus a proportionately-large fee and interest rate. You might think the fee is a small price to pay for the money you desperately need, but this initial charge is only the first part of the trap.

When the time to pay back your loan, the lender will give you two choices:

  • Repay the loan through the post-dated check or electronic funds transfer
  • Renew your loan and "roll over" the balance for another pay period (for another fee, of course)

Why Are Payday Loans Such a Trap?

Because of the tiny amount of time allowed to repay these advances, many people can't afford to pay when the due date arrives. This is an essential (and very intentional) part of the trap. People then have no choice but to go with the second option, and the lender will add another fee to your balance. If you roll the loan over three times or more, you can rack up a substantial amount of debt.

On top of all this, you'll need to sign a voluntary wage assignment to secure loans from many payday lenders. This document allows the lender to avoid going to court to garnish your wages if you can't pay them back. Instead, they can simply start deducting money from your paycheck without a court order.

Bankruptcy Can Set You Free From the Trap

Filing for Chapter 7 bankruptcy can free you from a trap set by a corrupt lender. Chapter 7 allows you to wipe out your debts, including payday loans. While Chapter 7 technically allows a court-appointed trustee to liquidate your assets to repay creditors, most DebtStoppers clients get to keep most — if not all — of their personal possessions.

Even if you've already fallen into the payday loan trap, it's not too late to stop the neverending debt cycle. Call or text Atlanta DebtStoppers today at 678-673-2142 to schedule a free bankruptcy consultation with one of our qualified Georgia lawyers.

If you've been ensnared by predatory loans, we can help you break free! Call or text DebtStoppers today to claim your no-cost case assessment.