Since the U.S. Government partially shut down, an estimated 800,000 government employees had their incomes put on hold while their financial obligations continue. As a result, many government employees may turn to short term high interest credit such as payday loans and credit cards in order to pay their bills.
Approximately 12 million Americans take out payday loans each year. Payday loans are generally less than $500 and are intended to cover a borrower’s costs until the next payday. However, the average borrower ends up indebted for almost half a year and pays on average $520 in finance charges on a $375 loan. Only 14% of borrowers can afford to pay the full payday loan by the time they get their paycheck.
If you are feeling overwhelmed by credit card or payday loan debt, it is possible to negotiate a settlement of a fraction of what you owe with our law firm.
Kevin Fallon McCarthy
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- Rise of the Jumbo Student Loans - March 17, 2018
- Credit Card Market: Now and Then - February 23, 2018