It’s Christmas time again and many Dallas-Fort Worth residents find themselves financially stretched. Buying gifts for family and friends can often completely deplete bank accounts, credit cards and even the kid’s piggy banks. Unfortunately for many, when January 1st rolls around, they still have the mortgage/rent to pay and other necessities, often forgotten while wrapped up in the spirit of giving. That leads many to take out the dreaded “payday loan” just to make ends meet. We’ve talked about this dangerous form or debt before; but Chrismas time makes many very vulnerable to falling into the payday loan trap, so we’re going to talk about it again.

Payday loans are the quickest road to financial disaster, just in case you were wondering. Many people who take out payday loans end up paying astronomical amounts in fees, such as paying $800 on a $300 loan and that is not an exaggeration. According to a study released by Vanderbilt Law School, over 10 million Americans borrow money using payday loans annually and I’m sure many of those people start borrowing right around Chrismas time. The study also said that customers approved for payday loans are more likely to file for bankruptcy than those who were denied payday loans. That’s right, the people who were denied a payday loan were more likely to avoid bankruptcy.

If you want to avoid becoming a payday loan victim this holiday season, pay for want you need first and limit the amount of gift giving this year if your budget can’t accommodate it. If you have taken out payday loans and find yourself in a financial hole you can’t dig out of, please note that payday loans can be discharged in bankruptcy.

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