The Los Angles Times recently ran a feature story about payday loans – those short term, high interest loans that service customers who need a cash advance in advance of their regular paychecks to cover emergency expenses.   According to the story, Cleveland is where W. Allan Jones founded Check Into Cash, the granddaddy of modern payday lenders, which cater to millions of financially strapped working people with short-term loans — at annualized interest rates of 459%.

As attorneys and financial counselors, we at Clark and Washington encourage our clients to avoid payday loans.  If you find yourself turning to this lender of last resort, it should serve as a signal that you need to consider significant changes to how you handle your finances.

A Chapter 7 or Chapter 13 bankruptcy may be one of those changes that you should consider.  While bankruptcy is a last resort, it can eliminate credit card debt, allow you to walk away from a house or a car with no penalty and it can provide a structure to pay back “permanent” debts like taxes and student loans.

If you find yourself turning to payday loan lenders, we encourage you to stop, step back and considr calling our office for a free debt evaluation.  Bankruptcy may not be the right answer for you, but there is simply no reason not to learn if the bankruptcy option can improve your quality of life.