Chicago Bankruptcy Lawyer Blog

Would you give up your paycheck to get paid earlier? Doesn't make sense, does it?

But millions of Americans do just that by taking out payday loans.

When you're strapped for cash and payday is days away, a short-term loan can look like a quick solution. Get the money now, pay for it later. But the problem is short-term loans mean high-interest, and interest rates don't get much higher than at payday loan centers, where paying $100 for borrowing $300 is not uncommon - and annual interest rates can exceed 500%. Makes your credit card APR look cheap, huh?

If you're not already in debt, relying on payday loans is a sure way to get there. Here's why.

Continue reading "Payday Loan Scams Are Putting Chicago Workers in Debt" »

Whoever said that patience is a virtue might have been talking about payday loans.

You've probably noticed payday loan centers in your neighborhood - maybe you've even used them yourself. An online search for payday loans in Chicago nets nearly 300 results. And with so many folks living paycheck to paycheck, it's no wonder. But, as with tax refund loans, while there's no faster way to get your earnings, there's also no faster way to lose them.

It's why my first payday loan was also my last. My coworker at the time wanted to go out to a club one night, but I said I had to wait until we got paid. No worries, she said, we'd just go get a payday advance. She took me to a center, where the cashier counted out three crisp $100 bills - for a $50 fee. Ouch! I decided then and there I'd rather wait for a few days and hold onto my entire paycheck.

My coworker wasn't so patient.

Continue reading "Payday loans a bad deal, advise Chicago bankruptcy attorneys" »