Cunningham, Chernicoff & Warshawsky, P.C.

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As of May 29, 2020, Dauphin County, where our office is located, has moved from Red to Yellow status. Our office will re-open on June 1, 2020. Until further notice, Stay Safe Guidelines will be followed, including safe social distancing (6 feet), cleaning after each client and the wearing of masks by employees and clients at all times while in our office. People who are ill and those without masks will not be permitted entry into our office.

How to escape payday loans

If you have fallen so far behind in your mortgage and car note payments in Harrisburg that you resort to using payday and cash advance loans, know that you are not alone. Many people just like you use them to help keep them afloat while they are in between paychecks. On the surface, payday loans may seem like an appropriate solution for you to use to catch up on your bills and financial obligations. But they often come with high-interest fees, which could end up putting your further in debt. Some people end up having to file for bankruptcy to help them with this type of debt. 

If you become unable to repay the amount you borrowed, you will incur penalties on top of the interest and entire amount of loan due. Before you find yourself trapped in a payday loan nightmare that you cannot escape from, consider the following actions to take. 

Do not borrow another dime 

The more you rely on payday loans to pay your bills, the more dependent you will become on them. You may encounter issues paying them back because of the high repayment fees and interest rates. Borrowing against your next paycheck before you have it can cause you to develop some bad financial habits. It also reduces the amount of money you have to pay your bills. Stop applying for payday loans and pay back the ones you can. 

Assess your financial habits 

Sometimes, it is not too much debt and too little income that can send people into a financial tailspin. It is their spending habits. Take some time to assess your spending and budgeting habits. Inventory every single dime that comes into your household. Be sure to include the amount of money that is spent on every service and product that you use. 

Make a plan 

To find your way out of this predicament, develop a plan and better spending habits. Come up with ways to eliminate excess spending. Contact your creditors to inquire about lowering your payments and restructuring your debts, and learn what programs they offer to individuals who face financial hardships. Crunch some numbers to determine what your monthly financial spending habits should be for the next three to five years. 

If you have so much debt and are so dependent on payday loans that you cannot see how you can get things back in order, do not give up. You might want to speak with a bankruptcy attorney for guidance and options.