Payday loans are short-term, high-interest loans that come at a very high price. Many people who turn to payday loans when they are in a bind find themselves trapped in a cycle of ever-increasing fees and rapidly-multiplying balances. Before they know it, they owe more than they’ll ever be able to pay.
Are you in a situation where you've borrowed a high-interest payday loan and now you owe more money than before? Now you have creditors harassing you to pay back the absurd amount you borrowed along with a super high interest rate? If this sounds like your situation, you're not alone. These lenders are notorious for taking advantage of hard-working people throughout Chicago and Illinois. Without professional help, escaping a predator’s lending trap can be impossible. Call or text DebtStoppers today to schedule a free personal consultation with one of our experienced Illinois debt settlement attorneys. We can put you on the road to financial freedom.
These are generally small loans with exorbitant interest rates and fees. Predatory lenders offer "cash now" to people in Illinois who have limited credit options and bills to pay. In theory, they pay back what they owe at their next payday. In practice, they usually end up digging themselves deeper and deeper into debt, suffocated by the rules in the fine print of these oppressive loans.
Other names for these loans include:
When you take out a payday loan, you'll write a post-dated personal check or authorize a subsequent electronic bank transfer. The payment amount will always include a proportionally large fee on top of the amount of money you are borrowing. Fees can either be a percentage of the amount borrowed or a flat rate based on increments of cash borrowed, such as a fee for every $100 you borrow.
Once you hand over the check or transfer authorization, the lender gives you the money on the spot. The loan will usually be due on the day you get your next paycheck.
On the due date, you have two options:
Every time you roll over the amount, the lender will charge you an additional fee.
Suppose you take a cash advance loan of $100 for two weeks. You will write the lender a check for $125, which includes a $25 fee to borrow the money.
On your next payday, you can allow the lender to deposit the check or choose to roll-over the balance and agree to another $25 fee to extend the financing another two weeks. If you roll your balance over three times, you'll be paying $75 to borrow $100.
In addition, most payday loans require you to sign a voluntary wage assignment. This means that if at any stage you’re unable to pay what you owe, the lender, without going to court, can get your employer to garnish your wages.
Filing for Chapter 7 bankruptcy in Illinois is a quick and legal way to escape unscrupulous lenders and start over with a clean slate. Illinois bankruptcy laws were designed to help people like you get back on track.
With a Chapter 7 bankruptcy, your debts can be discharged. Even better, most of our clients don't lose any of their possessions in the process.
DebtStoppers is the largest Chapter 7 filer in the state and the only Illinois firm that will file your bankruptcy for $0-Upfront. Our Illinois payday loan settlement lawyers know how to stop debt collection now. Call or text DebtStoppers today at 312-913-0630 to schedule a free one-on-one debt analysis.
If you're already in too deep with payday loans, don't give up! Instead, call or text DebtStoppers and schedule a free consultation with a qualified Illinois attorney.