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How High-Interest Loans Can Be a Slippery Slope to Bankruptcy

It’s hard to turn down money when you’re in a bind, but what’s the cost of the fast check? Typically, those who are desperate turn to payday loans or high-interest online loans without knowing that more than likely it won’t solve their financial problem – rather, it creates a new one. While payday loans are illegal in New York State, other forms of predatory lending are not. This is a form of financial exploitation for those who are usually financially desperate or otherwise unaware of the exorbitantly high cost of high-interest loans: potential bankruptcy.

Although you may be falling behind on monthly payments, it’s important to know that short-term loans offered at high-interest rates can lead to an even more dire situation very quickly. It’s not uncommon for those who make use of high-interest loans to eventually wind up filing for bankruptcy.

Alternative Solutions to High-Interest Loans

Instead of searching online for a quick fix to your financial woes, consider other avenues to get the debt relief you seek. You can:

  • Borrow from a local credit union
  • Obtain a small bank loan with much more favorable interest and loan terms
  • Seek credit counseling to manage your debt
  • Work with your creditors to settle your debts to postpone or even eliminate the need to file for a future bankruptcy
  • Ask for financial help from a loved one

When Filing for Bankruptcy Is a Good Idea

Are you afraid to answer your phone because you fear that it’s a debt collector? Worse yet, has your phone service been cut off? It may be time to consider filing for bankruptcy. This can give you, the debtor, a fresh start, and discharge debts from high-interest loans.

We can help. Our law firm offers no judgement and is here to assist you during a difficult time. To schedule an appointment with the Law Office of Seni Popat, please contact us at (718) 340-3385. We offer free, no-obligation consultations.