No-Payday Loans

No-Payday Loans

Most people have at least heard of payday loan providers. For others, utilizing a service of this type is part of their daily routine. Unfortunately, due to convenience and other factors, some people can overlook some of the risks of using a payday loan company versus a traditional bank. Due to certain practices utilized by most payday lenders, individuals can quickly find themselves spiraling into debt. In some circumstances the amount of debt may even become unmanageable and, despite best efforts, the individual may sink deeper and deeper into debt.

If you have encountered financial problems due to payday loans, the attorneys of Sadek & Cooper may be able to help you with bankruptcy-focused solutions. To discuss how the bankruptcy lawyers of the firm may be able to help you, call the Philadelphia Bankruptcy Lawyers at Sadek Law Offices, LLC at (215)-545-0008. You may also contact the firm by email at email brad@sadek-cooper-site.

What Are Payday Loans?

A payday loan is a type of non-traditional loan that is typically limited or small in nature. In many cases, people utilize payday loans when they are living paycheck-to-paycheck, are experiencing cash flow issues, or are otherwise temporarily out of money. Therefore, payday loans are also typically short-term loans of a duration of about two weeks. Most loans are for a relatively small money in the ballpark of $50.00 to $1,000.00.

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When seeking a payday loan it is common practice for the individual to write out a check for the full amount that is being  borrowed along with a percentage-based service fee charged by the payday lender. The check is generally left with the payday lender who you will instruct to deposit the check once you are able to repay the loan. However, until you repay the loan interest is accruing.

Costs of Payday Loans

Individuals who take out  payday loans often find that they are extremely expensive and they end up paying back many times over what they originally borrowed. Many payday lender borrows eventually determine that they have paid an annual percentage rate (APR) that may be several hundred percent. This is shocking when one considers that the typical mortgage rate is set at  4-11% or perhaps up to 35% on a traditional credit card.

To better illustrate the costs of a payday loan, consider that you might pay a $20 fee or more to borrow, plus daily interest. Let’s say you pay the $20 fee and take out a $100.00 loan for a two-week duration. According to calculations performed by tThe Consumer Federation of America, you would pay about 426% APR on this payday loan.

Why Do People Take Out Payday Loans?

People consider taking out a payday loan if they need a small amount of money, they need the amount of money fast, they are on a fixed income, have already maxed out on existing debt, have a lack of  savings, or are simply too embarrassed to go to a traditional lending institution.  However, instead of buying a few weeks longer by putting yourself into deeper debt with an extremely high-interest rate, the long-term solution would be to get rid of existing debt.

The problem with payday loans is that they are often marketed to and targeted at people who may be desperate and least able to absorb their high costs.  Unfortunately, it is the people who can least afford to pay the astronomical interest rate are the ones taking out such loans due to slick and persuasive marketing tactics that deemphasize the true costs and risks of a payday loan.  his is the main pitfall of a payday loan since the fees are so high, the debt becomes almost impossible to ever pay off and the overall debt increases extremely quickly.

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Should I Declare Bankruptcy to Get out of Payday Loan Debt in Pennsylvania?

Each and every financial and legal situation is unique and based on the facts and circumstances present. Therefore, it is not possible to recommend a legal strategy in the context of this article. However, for many individuals who have fallen deep into debt through payday loans, bankruptcy has provided solutions and a pathway out of debt. In the event one files for a bankruptcy, they are able to restructure or discharge their debts and be able to save for their future, rather than paying the high cost of payday loans.

Contact the Philadelphia Bankruptcy Lawyers of Sadek & Cooper Today

If you have questions or concerns you would like to discuss about bankruptcy law in the Philadelphia, Pennsylvania region, you may contact the Philadelphia Bankruptcy Lawyers at Sadek Law Offices, LLC at (215)-545-0008 or email brad@sadeklaw.com.  We are proud to help individuals in the Pennsylvania region get out of debt and move towards a sound financial future.

 

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Lavern Baker
Lavern Baker
17:03 23 Feb 18
You are all super lawyers. Brad and Matt made me feel comfortable. Every one in your office so nice and just made it easy. You’re the best!
peter b
peter b
19:42 21 Feb 18
Thank you, Sadek and Cooper Law offices for your dedication on my behalf. I appreciate Matthew and Patrick and your staff and all that everyone did to support me in this legal matter. You took an embarrassing, sad experience, for me, and turned it into a successful solution without all the emotional pain expected. After dealing with a loan modification company for over eighteen months without going to an attorney first that is the biggest mistake anyone can make. The Modification Companies set out to sell you lies, broken promises and dilute the homeowner's assets with no knowledge of any kind of law. I can't stress enough stay away from Modification companies, as a Military Veteran and family man, protect you or your family best interest. Go directly to Sadek and Copper you will not regret it! This firm moves with Super speed and diligence protecting you and your family's the entire process, even after watching some of these other attorneys in the courtroom appearing to mishandled their clients’ cases before the Trustee. You made it easy and I’m finally getting my financial life back on track! Thank you for your prompt replies to me, your clear information and preparation needed when at the courthouse. I would of course recommend you to others and I am glad you were the one who had my case. Kind genuine law firm who treats you like family. God bless you all and I pray for your continued success in your field of expertise. This firm is Super Lawyers for a reason. They are the best at what they do! Pete
Doug Tinlin
Doug Tinlin
06:55 15 Feb 18
Brad Sadek gave me hope when he decided to handle my mortgage for enclosure defense. I had exactly 10 days left of the 30 days ultimatum given me, but he was able to bargain for an extra 30 days for me to pay up. That duration turned out just right.
Jacinth Jacinth
Jacinth Jacinth
16:07 31 Jan 18
Excellent service. Brad and Matt were outstanding and friendly. They helped me through this. I’ve never met attorneys like these. Thank you!
julie njoku
julie njoku
12:29 24 Jan 18
Brad Sadek is excellent!. He understands and he's fair. You feel like you have someone fighting for you. The staff is friendly, professional, and courteous. These guys are the best at what they do !
Owen Black
Owen Black
20:14 09 Jan 18
Thanks for the great service! I would recommend this firm highly. Throughout the years I have been helped by this firm greatly and very much appreciated.
Steven Rychalsky
Steven Rychalsky
15:30 09 Jan 18
Sadek and Cooper law office was a wonderful experience to work with. Bankruptcy is a difficult experience but they helped with the stress so much and made it easy. I would recommend Sadek and copper too anyone.
Chris Kourelias
Chris Kourelias
19:09 28 Dec 17
Working with both Brad & Matthew was a pleasure. Both gentlemen are extremely knowledgeable and helpful in providing me the right assistance needed to make the correct decision to benefit me in the long run. I would recommend both candidates to anyone looking for assistance with a reputable law firm.
Jennyfer Santana
Jennyfer Santana
21:17 21 Dec 17
Highly Recommended. Matt & Brad assisted with my case. I felt comfortable throughout the entire process. Matt was very understanding, patient, and ensured he answered all my questions! Both great guys and very friendly! It was a pleasure working with Matt and Brad.
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