If you live in Columbus and find yourself pressed for money, you may be tempted by those ads you see for payday loans. The application is easy, the money comes fast, and you need it now. If you are under enough financial stress, you may not pay attention to the fine print or figure out just how much this fast money is going to cost you.
Be aware that while payday loans are easy to get quickly, they come with a big cost. If you are not careful, you will find that instead of helping you get past a difficult financial time, they can wind up sinking you further into debt to the point where you may not be able to recover.
If you are struggling with unmanageable debts in Ohio, there is help available. The seasoned Columbus, Ohio, bankruptcy lawyers at Fesenmyer Cousino Weinzimmer provide free initial consultations for people throughout the Columbus area who have gotten into financial difficulty. We will examine your individual situation and find the best way to guide you to debt relief. Contact us by email or call 614-228-4435.
Payday loans, also known as paycheck advances, are typically loans for relatively small sums, approximately $1,000 or less. People taking them usually hope to be able to repay the loan in days or weeks, often when they get their next paycheck.
The advantage of payday loans is that, compared to a conventional loan, which take hours to fill out applications and days before you can get the money, payday loans don’t require much paperwork, and you get the money you need quickly. No one will run a credit check or require proof of who you are, what your salary is, or how you intend to spend the money. You can get the loan even if you have a poor credit rating, and you’re not likely to be turned down.
If the idea of payday loans sounds good to you so far, take a moment to look at the disadvantages. Because of all the drawbacks, the Consumer Financial Protection Bureau (CFPB) is looking into establishing regulations for the industry. Also, the state of Ohio attempted to protect consumers from outrageously high interest rates of payday loans by passing the Short-Term Lender Law (STLA) regulating interest rates and prohibiting lenders from giving out loans on the internet or on the phone. Unfortunately, payday lenders found ways to get around these consumer protections by creating Credit Service Organizations, a kind of payday loan broker that adds high fees for “helping” the consumer find the loan.
There is no cap on the fee that the Credit Service Organization may charge. Your promissory note will describe the fee as a “prepaid finance charge,” which is added to the total interest you pay on the loan.
As a result, you no longer have the protections that Ohio lawmakers intended you to have. Many Ohio debtors wind up overburdened with payday loan debt, including unreasonable interest and other penalties that can pile up quickly.
The following are also disadvantages of payday loans:
Columbus-Area Payday Loan Providers
While a payday loan may seem like the only source of quick cash in an emergency, they should never be considered as anything other than a very short-term fix, not a long-term financial solution. The following site lists many of the companies that give payday loans in Columbus, Ohio.
options you may wish to consider instead of taking out a payday loan:
If you find yourself drowning in debt and being harassed because you are unable to make payments, take the first step toward getting your life back on track by contacting the experienced and compassionate debt-relief attorneys at Fesenmyer Cousino Weinzimmer today for a FREE INITIAL CONSULTATION.
We know what you are going through. We will evaluate your entire financial picture by looking at your income, your debts and your goals, and we will discuss the best fit for your individual situation. We will handle every phase of the process and find what works best for you.
We have helped thousands of Ohio residents find new hope.
Delaying can only make your situation worse, so call the Ohio bankruptcy attorneys at Fesenmyer Cousino Weinzimmer today at one of our conveniently located office branches at 614-228-4435 (Columbus), 937-222-7472 (Dayton), or 877-654-5297 (Cincinnati), or email for your free consultation.
Overwhelming debt can cause problems in all areas of your life, from being less productive at work to having money arguments at home that can lead to family breakdown. Adding to the stress is the accompanying…
Contrary to commonly held beliefs about who files for bankruptcy, the average bankruptcy filer is not a free-spending celebrity or a crook trying to cheat the system, but an ordinary middle-class American. According to an…
If your debts have become more than you can handle, the good news is that bankruptcy, a legal way to have many debts forgiven, can put you on the road to financial recovery. If you’re…