Imagine buying a Snickers Candy Bar, but you ask someone if you can borrow a $1 to get it. Then you pay them back and they say “no!” They want you to buy them a brand new 70 inch HDTV. Would you do that? No! This is what’s going on with payday loan companies. In most cases we see payday loan interest rates anywhere around 200 to 550% on average. However, they can go as high as 1,925% according to a recent news report on Channel 41 Action News.
Payday Loan Interest Rates
In one case cited in that news report a Kansas City man took a $500 loan and ultimately ended up paying close to $30,000 as a result of his initial $500 loan.
The most common reason why people take a payday loan out is to pay for their bills and livelihood. Taking a payday loan out at even 200% interest rate to pay on a credit card that is only 20% interest rate is a bad idea. What’s crazy is that 69% of people that have taken a payday loan out, say they took out the loan to pay for their credit card, utilities, rent, mortgage and even food.
Get A Financial Fresh Start With Bankruptcy
We get it, times are tough. People fall short on cash. However, you will never win if you take a payday loan out. The interest rates are way too high. Start rethinking your strategies. A Fresh Start is what you need if you are thinking about a payday loan.
If you find yourself thinking about taking out a payday loan, contact Castle Law Office to help you with a fresh start. Call us today at 816-842-6200 to speak with an attorney. Or you can email us and schedule your free consultation.