I’m Short on Cash, but in a Pinch. Should I Get a Payday Loan?

February 11, 2022 | By Steffens Law Office
I’m Short on Cash, but in a Pinch. Should I Get a Payday Loan?

So, you’re in a pinch: maybe you’ve had an unexpected expense, you owed someone a favor, had a medical bill, or needed a car repair. Should you get a payday loan if you can’t afford groceries, gas, baby formula, diapers, mortgage, rent, or something important this week, and you don't get paid several weeks away. What do you do?

In many cases, people may think that getting a payday loan will alleviate these problems and they’ll be fine the next time they’re paid. Sadly, payday loans don’t help; they only make your life harder.

3 Reasons Why You Should NEVER Get a Payday Loan

  1. You will only be able to receive $500 in advance of your next paycheck.
    1. $500 immediately can seem tempting, especially if you need necessities right away. But if you don’t have enough to pay rent or something more serious, $500 may not even be enough to cover what you need.
  2. why you should never get a payday loanYour lack of funds will be exploited.
    1. Payday lenders will take advantage of your fragile economic situation by charging you excessive interest that you may not be able to pay back.
      1. Their service fees are between $15 and $100 and will charge you up to 36% interest on your loan in Nebraska.
      2. You must pay back the entire loan plus the service fee within two weeks of borrowing or you will be charged at a ridiculous interest rate!
  3. You could get caught in a loan spiral.
    1. After you’re charged the interest rate, the remaining amount may simply get larger every week. This makes it harder and harder to pay anything back. Your whole paycheck might be needed to pay your loan back!
    2. You may even have to take out more loans to pay your other loans. This puts you in a far worse place than you were originally. At this point, the debt is likely to keep growing exponentially.

Filing Bankruptcy in Nebraska May Be Your Best Option

Don’t worry—there’s hope. Payday debt is dischargeable with a bankruptcy, and you’ll be given a fresh slate after you file. Remember: It’s not your fault if you were caught in this situation; you fell on hard times and you turned to the only thing you thought would help. There is nothing wrong with filing a bankruptcy in Nebraska—you, like many others who file, are a respectable, hardworking person who simply needs a way out. That’s why we’re here.

Contact Our Experienced Nebraska Bankruptcy Lawyers Today!

Our skilled Nebraska bankruptcy lawyers at the Steffens Law Office are experts in bankruptcy law and will do everything they can to empower you to take your life back. For a free consultation, not only can you contact us online, but you can give us a call today at (308) 872-8327; we will answer your questions and give you the resources you need to get a fresh start towards financial freedom.