Many of our clients are tempted to relieve some of their debt stress by taking out payday loans, or other short-term, high-interest loans. I know that the temptation can be great, but these kind of loans are almost never a good long-term solution and may put you in a worse position than when you started.
Creating one debt to pay another-robbing Peter to pay Paul-is like trying to fix a flat tire by the letting the air out of another.
There are many alternatives to more loans, such as:
- Contact a nonprofit credit counseling agency. They can help you assess your overall position and options. At a minimum, they will help create a budget and action plan that will be customized for you — and they’ll do it for free.
- Swallow your pride and speak to a friend or family member. They may offer insight, support or maybe even financial help.
- Sell some stuff. Garage sale, eBay, or Craigslist are all good options.
- Try to get a second job or overtime, if possible.
- See an attorney to find out if you might be eligible for, and helped by, bankruptcy.
If you are thinking about filing bankruptcy you should consult with a qualified attorney before filing. If you are considering filing for bankruptcy and have questions regarding your eligibility or regarding any other part of the process, please contact me at [email protected] or (248) 246-6536 to schedule a free, initial consultation.