Bankruptcy payday loans are an easy alternative to traditional financing, which is much harder to get after you've had a troubled financial past. They are, however, a very dangerous financial move, especially for someone with a troubled financial past who is trying to get back on their feet.
The appeal of this option is that they are willing to do business with you when you have any kind of financial problems in your past, you just need to have a job and be a citizen of the country you're in to get one.
The other reason this type of financing came about is that they fill a gap in the industry--they do smaller amounts. A typical cash advance is less than $1,500. The APR on this type of financing is astronomical, but the idea is that you aren't going to be paying a yearly interest rate, you're going to pay this fee at the time of your next paycheck when you repay the amount.
The reason this is such a risky financial move, however, is that very often when the time comes to repay the amount you borrowed, you weren't really prepared, or something has come up, and you decide to extend the terms and pay more in fees.
This easily ends up snowballing until you are taking out more payday loans to pay back your others, and you end up spiraling into an insurmountable debt.
Because of this very common cycle, it's important to stay away from this type of financing after bankruptcy.
Payday loans may seem like your only option in a tight spot, but it's very important to avoid them. For this reason, it is always recommended that you try and save up an emergency savings fund of about $1,500 for financial emergencies.
Things always come up that your budget won't be expecting, like needing new tires, medical bills, vet bills, etc. If you keep replenishing an emergency savings you will always have this available to you when these things come up.Apply Now