These past few months have been among the most difficult we’ve ever witnessed, but the worst is far from over. As you look towards the weeks and months ahead, you may have fears: how will you make ends meet? If you’ve found yourself in a vulnerable spot, be advised that there are ill-intentioned people out there, looking to take advantage of that vulnerability. The good news is that long-term stability is attainable through bankruptcy.

Read below to learn more about the trap of payday loans, and the relief that bankruptcy offers.

Our country is facing unprecedented uncertainty.

We are squarely in the middle of an unprecedented historical moment—and an unprecedented economic crisis, with millions unemployed. In recent months, governments have expanded support for those who are newly unemployed or have suffered income losses. But the relief is not permanent. In many states, the more substantial unemployment benefits, the moratoriums on eviction, and the student loan forbearance are all set to expire soon.

Right now, easy fixes like payday loans are tempting. But they’re not just too good to be true, they’re worse than you’d imagine. And sadly, many Americans will enter a cycle of debt that they cannot get out of.

How do payday loans work?

Payday lenders give people small amounts of money, intended to be repaid by their next payday. In reality, it rarely plays out that easily. High interest rates make these loans expensive; essentially, you’re paying a lot of money to borrow money. It becomes a brutal cycle. When payday rolls around, the borrower has more bills to pay.

Vox’s Emily Stewart writes:

According to a 2013 report from the CFPB, a $350 loan can come with a fee of $15 to $100, which for a two-week loan translates to an annualized interest rate of 391 percent. The bureau also found that more than three-quarters of payday loans are rolled over to another loan within 14 days. A 2012 report from Pew Charitable Trusts estimates that 12 million American adults use payday loans each year and that, on average, borrowers take out eight loans of $375 each — and spend $520 on interest.

A payday loan makes it difficult to live within your means.

More often than not, simply taking out a payday loan indicates that you can’t live within your means. There’s no need to be ashamed. You are far from alone, especially now.

Throughout my career, I’ve seen many payday loan borrowers—who are hard-working people trying to provide for their families—default on their scheduled payment. That creates a whole new set of troubles. Lenders can transfer your account to a third-party debt collector. It may get ugly: non-stop phone calls, threats of arrests and lawsuits.

Rest assured that debt collectors don’t have the legal authority to arrest you, nor are they allowed to say you’ll be arrested if the threat isn’t real. But the real problem is the long-term state of your finances. Through bankruptcy, a proven, time-tested solution, you’ll never have to worry about those debt collector’s calls again.

We’re all navigating uncharted territory here. These are tough times, and there may be even tougher ones ahead. Arguably, bankruptcy has never been so important. In a world with so much uncertainty, bankruptcy offers stability you’re unlikely to find anywhere else.

I can help you take steps towards a better future. Call (901) 327-2100 or contact us online for your free consultation.