In Kansas and need a quick loan? You may want to think twice before you walk in the door of that corner payday loan shop.
Although, you can surely get a bad credit payday loan, even if your credit report looks like the bottom end of a failed geometry test. It’s possible you’re going to dig yourself into deeper trouble. Instead of taking money to the bank you may be borrowing yourself into the deep abyss of chapter 13 bankruptcy.
What’s The Problem?
Quite simply, anyone willing to extend you a bad credit payday loan, chances are, knows you’re desperate for money. And guess what? They’re going to take advantage of that for a tidy profit.
There are some states like Tennessee and Colorado, have called payday lenders “loan sharks” and consequently, have implemented strict state regulations within the payday loan industry to control interest rates and collection practices. They’ve got a handle on the ins and outs.
But Kansas payday loans are not strictly regulated. In Kansas, you can keep extending the amount of time you have borrowed the money, if you need it, to give you more time to pay it back.
Good, you say? Not exactly. A Kansas payday loan comes with strings attached, every time you renew the loan term you’ll be charged a sizeable fee, and the interest continues to acrue and gather sizable bulk. Some (not all) of these payday loan companies have been known to harass customers using debt collectors. There are reports of payday loan deadbeats having been thrown in jail.
The only positive: The FTC recommends that each borrower become familiar with the ‘Truth in Lending’ Act. This act requires that all lenders, even those offering bad credit payday loans, to conduct business ethically, making certain each customer is aware of all fees and payment scheduless before signing the lender’s contract.
Got a complaint? If you think the act has been violated the FTC will process your complaint. Some lenders have been prosecuted for racketeering this way.
What’s The Solution?
Where does this leave you, the borrower? Broke and penniless? No matter how bad your current situation is you can still borrow money if you need it, or you can rebuild your credit and finances and forgo the high interest Kansas payday loan.
You can make an appointment with a credit/debt counselor and discuss your best course of action. You do this by calculating your your total income and all your major expenses, how much you owe, etc. Don’t be embarrassed – these experts have seen it all before. They know more than a few people who were in worse shape than you. The debt counselor, if you choose this course of action, will work out a payment plan between you and your creditors. Over time, you will steadily decrease your debt load. They will also help you avoid getting into a similar situation in the future by managing your money responsibly.
One Final Thought: If you do decide yo secure a Kansas payday loan, please borrow responsibly and pay back the loan on time.