PAYDAY LOAN ALTERNATIVES, PART 1

You and I both know that the "big problem" isn't the payday loans. They are just the final indication of the long-standing battle you have been waging to get your expenses in line with your income. So far, the expenses have been winning. To really help yourself, I suggest that you begin with the basics and dust off the budget that the counseling agency gave you. If they didn't give you one, then call another one and ask for help developing a budget. This is the best way I know to see if you can actually live on the money you are bringing in.

If you can live on the money you earn but can't meet your debt obligations with a part-time second job or by cutting expenses to the bone, I would recommend that you consult with an attorney. Your attorney can help you determine if bankruptcy is your best option or if you just need assistance in getting the payday lenders to agree to a reasonable repayment plan. The attorney can also check the laws in your state governing payday lenders and determine if the lender has done anything illegal, which could make your loan uncollectible. A good place to find a qualified attorney is the National Association of Consumer Bankruptcy Attorneys.

Fortunately for the millions of consumers like you who have fallen into the payday lending trap, legislators are taking notice. Many states have already put in place laws that prevent many payday lending abuses, such as interest rates at the equivalent of 300 percent or more annually. Fifteen states and the District of Columbia have laws in place that prevent payday lenders from charging more than a double-digit interest rate for loans. The states include Arkansas, Connecticut, Georgia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Vermont and West Virginia.