Payday loan stores are all around in Illinois. They are all around because Illinois does not currently protect consumers from the high interest rates that a payday loan store charges and the business is so profitable. The interest rate will generally be from 300% to $600% per annum. When a consumer is pinched for money a payday loan may seem like an easy way out; however, it is generally a recipe for financial disaster.

A payday lender allows a person to take a short term loan as long as they sign a wage assignment, and or give a checking account and routing number, and give them post dated checks. If the person takes the loan out they generally will not be able to pay the loan off when it is due and they will have to rollover the loan capatalizing more interest on the balance creating more of a problem. If the person cannot pay the loan or defaults which happens a lot, the collection calls start and then the payday lender usually will send a wage assignment to the persons employer. In addition, the lender can also sue for the balance owed and then get a garnishment.

When a person is strapped financially they will often go to a payday lender. Payday lenders seem like an easy way out of a short financial problem; however, they generally lead the person into a bankruptcy. Payday loans are dischargeable in either a Chapter 7 or a Chapter 13. Generally, a bankruptcy is the only option a person will have depending on the other debts that they have because of the risk of garnishment and other debts. If you have payday loans please feel free to call me for a free consultation at 312-489-8182!. I am a Chicago bankruptcy attorney who is experienced in representing clients just like you in financial distress. I want you to lose your debt and maintain your dignity!

Marc