Bankruptcy Alternatives & Loans to Watch Out For

Posted by Richard Baker on June 2nd, 2021

We at the Sherman Law Firm understand all too well the fear and anxiety when burdened with loans and a troubling mortgage. When you’re backed into a corner by all your creditors and pending bills, you might be tempted or given a chance to opt for the seemingly easier route. The sad fact is there are many firms and companies in Fort Worth and Bedford area that prey on debtors. Below are the most common bankruptcy alternatives and loans you might encounter.

Credit Repair

You might have come across advertisements in newspapers, TV, or radio about credit repair services. They often promote that they can repair or even clear your credit history for a fee, which could be by the thousands of dollars. In reality, the only way to actually repair bad credit is to repay debt. If you are currently after improving your credit score, it is best to consult with an attorney knowledgeable and experienced in credit counselling and bankruptcy.

PayDay Loans

PayDay loans are allowed in Texas. In fact, there is no limit on the interest set and amount one can borrow. However, before you even consider this type of loan, be very careful. What can start out as a short-term loan that will be payable on your next salary could start a domino effect. For instance, after paying off the first loan, you decided to take out a new one and charge it to your next paycheck. The problem is your next salary didn’t cut it. This will end up with higher interest rates and the lender will constantly try to take money from your account, in which the bank will likely charge you for an overdraft fee. While you are unable to pay the lender will aggressively collect from you and you will be stuck with an even bigger problem.

High Interest Loans

When an offer seems too good to be true, it often is. High interest loans offer immediate solutions if you need money right away, with the promise of “No Credit Check” or “Bad Credit, No Credit, No Problem.” The only thing they offer is short-term solutions, because once you fail to make payment, the interests will start to pile up. We have encountered clients who have personal loans with higher interests than the initial amount they borrowed.

Get more insights and learn about bankruptcy through our blog. For a more comprehensive legal advice, please call us here at Sherman Law Firm, P.C. and schedule a free consultation today.

Source: https://familybankruptcy.attorney/bankruptcy-alternatives-loans-to-watch-out-for/

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Richard Baker

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Richard Baker
Joined: March 17th, 2020
Articles Posted: 43

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