January 11, 2013 (Press-News.org) Now that the holiday season has passed and 2013 is officially here, many Texans are trying to make good on their New Year's resolutions to get their finances under control. Unfortunately, for individuals who relied on payday loans, car title loans or other types of storefront lending to finance their holiday spending, this may be easier said than done.
Payday loans offer a quick way for borrowers to get access to short-term loans, usually between $400 and $1,000. While these loans may not seem too costly at first, their strict terms and high fees can make them extremely difficult to pay back.
Payday loans are expensive. Most payday loans have 14-day repayment terms. According to a report by NBC 5 Investigates, in exchange for a two-week loan, borrowers typically pay a fee of about $120 for each $500 borrowed. This equates to an annual percentage rate of approximately 600 percent, a rate significantly higher than nearly any credit card or bank loan.
The costs grow when borrowers cannot afford to pay back the entire loan on time -- a fate that befalls three out of every four payday loan borrowers. Borrowers must pay that fee again each time they want to refinance the loan. In a matter of just a few weeks, the fees and financing charges can outgrow the loan principal. It is not hard to see how serious financial problems -- and even bankruptcy-- could quickly follow.
New regulations for payday lenders?
Payday loans tend to be a bigger problem in Texas than in the rest of the country, largely because the state has so few regulations. When borrowers apply for payday loans, there are very few checks and balances to determine whether they can actually afford to pay the loan back. In addition, because Texas law does not place limits on the fees that can be attached to payday loans, borrowers often end up paying about 50 percent more for the same loans offered by the same companies.
This may change in 2013. Texas lawmakers are geared up to place new regulations on the payday lending industry. At the very least, they hope to replace the current set of piecemeal municipal regulations with one overarching set of rules for the entire state.
The industry, though, has a lot of clout and is expected to push back against the proposed restrictions. According to data from Texans for Public Justice, payday lenders donated more than $1.6 million to Texas campaigns during the 2012 election season. The industry also has a team of high-paid lobbyists at its disposal -- in 2011, they were able to defeat efforts to cap lending rates.
Help for struggling borrowers
If you or a loved one is struggling with the consequences of a payday loan or other types of unmanageable debt, know that there is help out there. There are a number of debt management solutions, including filing for bankruptcy, that can help you get back on your feet. Talk to a Texas bankruptcy attorney who can help you understand your options.
Article provided by Davis Law Firm
Visit us at www.myaustinbankruptcyattorney.com
Payday Loans Bring Post-Holiday Blues for Texas Borrowers
Texas' lax rules on payday lending make it very difficult for borrowers to get ahead.
2013-01-11
ELSE PRESS RELEASES FROM THIS DATE:
More Couples Using Technology to Co-Parent After Divorce
2013-01-11
When a couple with children breaks up, the drama doesn't stop once the divorce is finalized. Depending on the age of the children, the parents will have to work together as co-parents for years or even decades.
Unsurprisingly, the co-parenting relationship is the source of a lot of stress for many divorced couples in Georgia. After all the acrimony of the divorce, couples often find it hard to work together. At the same time, though, they are conscious of their divorce's impact on their children and want to avoid fighting in front of their kids.
Increasingly, these ...
Some Homeowners Policies May Put Limits on Coverage for Dog Bite Claims
2013-01-11
According to the Insurance Information Institute, dog bite claims account for more than a third of all homeowners insurance liability claims. In 2011, insurers paid out approximately $479 million on these claims, an increase of 16 percent from the previous year.
When a dog bites someone, it is only fair that the victim receive compensation for his or her injuries. Normally, the dog owner's home insurance policy covers expenses related to bite claims. The costs are not insubstantial: according to the Insurance Information Institute, the average dog bite claim payout in ...
Take Control of Your Financial Future, Avoid Debt Settlement Companies
2013-01-11
As we begin a new year, many people in Texas and across the country who are struggling to escape increasing debts will make efforts to start fresh in 2013. Many will turn to reputable sources, such as attorneys, to receive advice on the best course of action for their specific situation. Unfortunately, though, many others will see hope in false promises made by debt settlement companies. For these people, although their intention may be to become debt free in 2013, debt settlement scams may actually leave them in a worse position than where they started.
The National ...
Washington's State Prosecutors Taking a Closer Look at Warrantless Searches
2013-01-11
Most people assume that since the Fourth Amendment to the U.S. Constitution prevents "unreasonable search and seizure," they are protected against having their person or property searched without a warrant. That assumption is wrong, however, and Washington law enforcement has been heavily relying on a 1971 law designed to ferret out organized criminals to gather evidence about run-of-the-mill defendants.
When an Associated Press news story shined light on the practice of "special inquiries," the state's association of prosecuting attorneys decided ...
New Software Helps Reduce Emergency Room Errors
2013-01-11
The fast-paced environment of an emergency room creates situations in which errors are more likely to happen than in the rest of the hospital. Noise, an influx of patients exceeding the hospital's resources, lack of communication and other factors can cause mistakes, including medication errors, treatment errors and discharge errors. Many of these errors are insignificant and go unnoticed, but emergency room errors can have serious repercussions ranging from discomfort to fatality.
Hospitals seek to minimize emergency room errors through software advances
According ...
New Report on the Connection Between College Student Arrest History and Job Acquisition
2013-01-11
The Orlando Sentinel quoted the senior DJJ official about the report that was released. "While these numbers continue to move in the right direction, there is much work to be done to reduce unnecessary arrests in our schools," DJJ Secretary Wansley Walters said in a statement. "Misdemeanors accounted for 67 percent of all school-related arrests and 51 percent of schoolchildren were arrested last year for their first offense. Youth who act up at school should not be referred to DJJ for 'punishment,' forcing them to enter the juvenile justice system needlessly."
Though ...
New Government Program May Help with Student Loans
2013-01-11
The new version of a federal program called Pay-As-You-Earn may help college students escape crushing student loan debt.
A recent Chicago Tribune report described how proposed changes to the program may help make repayment far easier than what is currently available and might ease the burden on many students who took out loans in the past year.
The changes do not affect family or private loans, but may prove a major boon for those with federal subsidized or standard federal loans.
Details on the Proposed Changes
The proposed changes mirror the system currently ...
Nicaragua Continues to Attract International Media in 2013
2013-01-11
Nicaragua was recently featured in the World's Top 10 Retirement Havens for 2013, published by the Huffington Post. According to the article, Granada, one of the country's tourism hotspots, was ranked number 8 among the best, the most comfortable, the most affordable, the most convenient, and the most rewarding spots worldwide for retirement in 2013.
Kathleen Peddicord, Publisher of Live and Invest Oversees, mentioned that "geographically, Nicaragua is blessed, with two long coastlines and two big lakes, plus volcanoes, highlands, rain forest and rivers", adding ...
SF Bay Area NGO's Innovative Training Model Gets Global Recognition
2013-01-11
Rising Sun Energy Center (Rising Sun), a leading workforce development non-profit based in the San Francisco Bay Area, has been selected as one of only fifteen organizations to be featured in Learning a Living: Radical Innovation in Education for Work. The book, which was recently published and is now available on Amazon.com, addresses a critical issue occurring around the world: the failure of education systems to equip students adequately for today's labor market, and consequently, to become productive members of their communities.
Rising Sun was also invited to be ...
Prompt Proofing Blog Post: Your New Year Marketing Plan
2013-01-11
If you haven't already implemented a marketing plan for 2013, don't panic - it's never too late to start.
Content marketing was the buzz phrase of 2012 and the theory still holds good as we start the new year. Give your customers, existing and potential, something of value. If they find something useful to them on your website, in your blog, or in your email missives, they will think of you as a) an expert in your field and b) someone trustworthy who freely shares useful tips and information. Both can only help your business and your reputation.
The majority of marketing ...
LAST 30 PRESS RELEASES:
Walking, moving more may lower risk of cardiovascular death for women with cancer history
Intracortical neural interfaces: Advancing technologies for freely moving animals
Post-LLM era: New horizons for AI with knowledge, collaboration, and co-evolution
“Sloshing” from celestial collisions solves mystery of how galactic clusters stay hot
Children poisoned by the synthetic opioid, fentanyl, has risen in the U.S. – eight years of national data shows
USC researchers observe mice may have a form of first aid
VUMC to develop AI technology for therapeutic antibody discovery
Unlocking the hidden proteome: The role of coding circular RNA in cancer
Advancing lung cancer treatment: Understanding the differences between LUAD and LUSC
Study reveals widening heart disease disparities in the US
The role of ubiquitination in cancer stem cell regulation
New insights into LSD1: a key regulator in disease pathogenesis
Vanderbilt lung transplant establishes new record
Revolutionizing cancer treatment: targeting EZH2 for a new era of precision medicine
Metasurface technology offers a compact way to generate multiphoton entanglement
Effort seeks to increase cancer-gene testing in primary care
Acoustofluidics-based method facilitates intracellular nanoparticle delivery
Sulfur bacteria team up to break down organic substances in the seabed
Stretching spider silk makes it stronger
Earth's orbital rhythms link timing of giant eruptions and climate change
Ammonia build-up kills liver cells but can be prevented using existing drug
New technical guidelines pave the way for widespread adoption of methane-reducing feed additives in dairy and livestock
Eradivir announces Phase 2 human challenge study of EV25 in healthy adults infected with influenza
New study finds that tooth size in Otaria byronia reflects historical shifts in population abundance
nTIDE March 2025 Jobs Report: Employment rate for people with disabilities holds steady at new plateau, despite February dip
Breakthrough cardiac regeneration research offers hope for the treatment of ischemic heart failure
Fluoride in drinking water is associated with impaired childhood cognition
New composite structure boosts polypropylene’s low-temperature toughness
While most Americans strongly support civics education in schools, partisan divide on DEI policies and free speech on college campuses remains
Revolutionizing surface science: Visualization of local dielectric properties of surfaces
[Press-News.org] Payday Loans Bring Post-Holiday Blues for Texas BorrowersTexas' lax rules on payday lending make it very difficult for borrowers to get ahead.