Sometimes Olympia residents take out a pay day loan to help cover the cost of an unforeseen emergency or unexpected expense. This can lead to problems if the loan cannot be paid by its due date. Additional fees and astronomical interest can ultimately make it impossible to ever repay the debt. Pay day loans can have annual percentage rate (APR) that runs as high as 5,000%, in certain situations. When you compare this number to the average 9% to 30% APR of a major credit card, you quickly realize how devastating a pay day loan can be to a person's finances.
One unexpected family emergency can make it impossible to ever get caught up on a pay day loan. These lenders often tell debtors that their loan cannot be discharged if they file for bankruptcy. This is entirely untrue and unenforceable in court, even if the pay day lender makes you sign a contract that says as much.
People who are already having money troubles are the likely candidates for pay day loans. If you're having money trouble and fall behind on bills, what you really need is lasting debt relief, not a temporary solution. Our Olympia bankruptcy lawyers offer a way out of the unrelenting cycle of unmanageable debt. Bankruptcy allows you to eliminate most or all of your unsecured debt, including all pay day loans. Contact our law office in Thurston County and find out whether you qualify for bankruptcy and will benefit from eliminating debt incurred from a pay day loan.
If debt is causing you trouble, our Olympia pay day loan relief lawyers can helpIf you took out a pay day loan and can't get it paid off, it may be time to consider bankruptcy as an option. Obtaining a pay day loans often means you're already in need of financial relief, and bankruptcy allows you to eliminate debt and get a fresh start financially. Our Olympia bankruptcy attorneys can help you seek a solution to out of control pay day loan debt, regardless of what your lender told you.
Threats of criminal prosecution from non-payment of a pay day loan are falseMost pay day loans are secured by writing a postdated personal check to the lender. These lenders often say that failure to repay the loan could lead to criminal prosecution, because writing a bad check is considered fraud in the state of Washington. Nobody wants to go to jail, so many people keep trying to pay down their loan even if they can no longer afford the payments.
In Washington State, knowingly writing bad checks is criminal fraud. However, pay day loans don't qualify as fraud because the borrowers do not write bad checks. In this situation, the pay day loan company knows the borrower lacks sufficient funds in their bank account, which is why they accept a postdated check. The legal agreement is repayment of the debt at a future date, which shows that the borrower intended to pay it. This proves a pay day loan is no different than a credit card debt.
While a pay day loan agent may say that it's impossible to discharge pay day loan debt via bankruptcy, our Thurston County pay day loan relief lawyers know that the law says otherwise. We urge you to arm yourself with an accurate understanding of your legal rights before you make any decisions regarding pay day loan debt.
Our Olympia bankruptcy attorneys will discuss discharging all of your pay day loan debtIf you currently use the same bank account from which a check was written to secure a pay day loan, close it as soon as you can. Our Washington attorneys suggest that everyone filing for bankruptcy take the same action, because if you overdraw an old account it can make it difficult to open a new one.
Our bankruptcy lawyers in Olympia can help you put an end to the vicious cycle of pay day loan debt, so contact our law office for a free consultation today.