How Can I Get Rid of Payday Loans?
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| Discharge payday loans by filing for Chapter 7. |
Breaking the Cycle of Debt
Payday loans are short-term unsecured loans providing a cash advance to borrowers at very steep interest rates. Borrowers dedicate the income coming from their next paycheck to this new debt. When borrowers cannot pay the loan back quickly, the consequences can be disastrous. The high interest rate compounds upon a missed payment and becomes unmanageable.
Borrowers may end up paying fees to roll the loan over. The fees rack up beyond the cost of the borrowed amount itself and put the borrower in a worse financial shape. A payday loan for $100.00 might grow to a $1000.00 repayment very quickly.
How to Eliminate Your Payday Loans
Before filing for bankruptcy, attempt to repay your payday loan debts. The Law Office of Steven R. McDonald guides you through the process of eliminating your payday loans. We walk you through crucial steps to help you recover financially:
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List Your Loans: Write down the details of each payday loan, including the lender, amount owed, interest rates and repayment terms.
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Negotiate: Reach out to your payday loan lenders to discuss your situation.
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Explore Repayment Strategies: Attorney McDonald will teach you about repayment strategies and understanding how to recover from your finances.
The best way to avoid having to pay back excessive interest payments is to stay away from payday loans in the first place. Don’t take out another high-interest loan trying to pay back another.
Debt Snowball Method vs Debt Avalanche Method
Repay your debt with these two strategies.
| Debt Snowball Method | Debt Avalanche Method |
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Getting Rid of Payday Loan Debt with Chapter 7 or Chapter 13 Bankruptcy
If you cannot financially recover from payday loan debt on your own, bankruptcy can be a good way to get rid of your payday loans. Payday loans are unsecured and may be relieved by filing for Chapter 7 bankruptcy. Chapter 13 bankruptcy also eliminates payday loan debt for individuals behind on house or car payments.
Bankruptcy attorney Steven R. McDonald, is located in Oak Creek and serves Franklin, St. Francis, Cudahy and the greater Milwaukee area, helping clients through difficult financial times. He walks you through the complexities of Chapter 7 or Chapter 13 bankruptcy law and your financial future.
Filing for bankruptcy is an overwhelming and exhausting process to tackle on your own. Attorney McDonald is here to help you through it and get you back on track toward a brighter financial future.
Filing for Bankruptcy on Installment Loans
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| Payday loans can cause a dangerous loop of debt! |
An installment loan is any loan scheduled to be repaid over time with a set number of payments. If you file for bankruptcy, you are required to include all debts including installment loans. Whether or not the loan will be cleared depends if the installment loan is classified as secure or unsecured debt.
Secured loans cannot be discharged through bankruptcy, though a bankruptcy attorney can help you select bankruptcy exemptions to protect your property. Filing for bankruptcy can completely clear unsecured debt, making it possible to continue payments on secured loans.
Contact attorney Steve McDonald for a free bankruptcy consultation to learn more about your best options for debt relief.
How Do I Know If My Loan is Secured or Unsecured?
Secured loans are backed by collateral. Collaterals are assets a lender can claim if you fail to repay the loan. Common secured loans are mortgages or car loans.
Unsecured loans are not backed by collateral. The loans are approved based on your creditworthiness and ability to repay, such as personal loans or student debt.
Milwaukee’s Trusted Debt Relief Attorney
If you are past the point of no return and considering filing for bankruptcy, Steven R. McDonald is here to help you through the process. With 20+ years of knowledge in Chapter 7 and Chapter 13 bankruptcy, he guide you out of debt and provides you with a clean financial state.
Contact Oak Creek Attorney Steven McDonald to get rid of payday loan debt with Chapter 7 bankruptcy.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
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