Payday Loans Cause More Bankruptcies and Overall Financial Instability

Payday Loans

A recent Chicago Now article detailed the increased enforcement against payday loan businesses that Mayor Rahm Emanuel says further victimize Chicago’s most vulnerable families. According to the Mayor, payday loans are a bad business practice that leads to higher bankruptcy rates, lower credit scores, and overall financial instability.

In order to crack down on these businesses, the Mayor intends to implement a new zoning ordinance that limits the number of payday loan businesses, auto-title loan businesses, and similar establishments in Chicago. These businesses tend to pop up in clusters throughout Chicago’s poorer neighborhoods. For instance, North Avenue between Cicero and Harlem Avenues is home to no less than 20 storefront lending businesses, all of whom market their services primarily to those who have lower incomes, little education, rented homes, a lack of English language skills, and only one parent in the home. By limiting the geographic concentration of these businesses, Emmanuel hopes to cut down their negative influences on unwary consumers.

When low-income people do find themselves caught in the payday-lender trap, they may feel as if they have nowhere to turn for relief. Extraordinarily high interest rates, threats by unscrupulous lenders, and loss of car titles or other collateral all can make it impossible for people to escape from their financial situations, even as they fall further and further into debt. For people who were barely making ends meet to begin with, falling victim to payday lenders just makes their situations go from bad to worse.

Fortunately, people who find themselves overwhelmed by their debts may have a solution – bankruptcy. Depending on their situations, many people who have been lured in by payday lenders might benefit from a fresh financial start, one that only Chapter 7 bankruptcy can accomplish. This type of bankruptcy filing is designed for people with few nonexempt assets, lower incomes, and large amounts of consumer debt. Consult with your experienced Oakbrook bankruptcy attorney today, and see whether Chapter 7 bankruptcy is a viable solution for you and your family.

We diagnose he clients’ problems through our customer care service and then advice them accordingly on how they should go about meeting their short term financial requirements based on their financial abilities. We are a licensed short term payday loan provider and give you the opportunity to discuss your unique needs according to your financial condition, with our customer care executives, prior to and all through the procedure of applying and approval of your uk payday today.