We know it’s tempting, easy access to next week’s paycheck when last week’s paycheck is already spent. But taking out a payday loan may actually send you to the poorhouse and sink you into so much debt that it may be impossible to dig yourself out. Taking out just one payday loan could turn into a financial nightmare because these loans often have interest rates that are 390 percent APR. (see: http://www.allmandandlee.com/bankruptcy_blog/pay_day_loans/payday-loans/) And these loans are treated just as any other debt, meaning they must be paid or the lender can sue you for the money. In many cases the payday lender already has a “voluntary wage assignment” agreement with the borrower, which allows the payday lender to deduct a specific amount out of the borrower’s paycheck each week/month. Please don’t ever sign a “voluntary wage assignment” agreement; they are literally the kiss of financial death of debtors who are already struggling financially. If for some reason you can no longer afford those weekly/monthly deductions from your paycheck it may be next to impossible to stop the deductions fast enough to make a difference. If you have already signed a “voluntary wage assignment” agreement with a payday lender please read our blog “Voluntary Wage Assignment & Payday Loans” ( http://www.allmandandlee.com/bankruptcy_blog/pay_day_loans/voluntary-wage-assignments-payday-loans/ ) to find out how to revoke the agreement.

One more word on payday loans… you don’t need them. Even if you are financially struggling and facing foreclosure a payday loan is the worse thing you can do. There is a lot of propaganda out there about how government restrictions on payday loans are leaving poorer families worse off; but it simply isn’t true. If you are in a financial situation where you feel compelled to take out a loan and pay 390 percent in interest then you probably need to file bankruptcy. If you are already trapped in the payday loan trap of high interest rates and multiple loans, contact a Dallas- Fort Worth bankruptcy attorney. Payday loans can be discharged in bankruptcy.

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