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Are Payday Loans and Bank Overdraft Charges Warning Signs?

If using credit cards to pay gas and electric bills is "robbing Peter to pay Paul," then payday loans might be seen as "borrowing money from Peter to pay Peter."

In our three decades of experience as bankruptcy attorneys in Indianapolis, we can say the following with absolute certainty: Payday loans and frequent bank overdraft fees are red-flag warning signs of major financial crisis. For any individual or family in this difficult position, we at Redman Ludwig, P.C. , urge you to seek financial counseling from a reputable source as soon as possible. You have other options than continuing to get payday loans off future paychecks and fighting the individual bank overdraft fees.

Your gut reaction may be that filing bankruptcy is worse than trying to fight your way out of financial crisis. When you learn all the facts, however, you may decide that a bankruptcy filing is your best ally during difficult financial times.

Consider this comparison between possible futures, one in which you initiate a Chapter 7 or Chapter 13 bankruptcy filing and one in which you do not.

Bankruptcy Filing
After Payday Loans

No Bankruptcy Filing
After Payday Loans

  • Unpaid payday loan debt erased under Chapter 7 or reorganized under Chapter 13 according to your own preferred repayment plan
  • Bank overdraft fees erased under Chapter 7 or reorganized under Chapter 13
  • Other debt discharged or consolidated depending on the type of bankruptcy filing
  • Creditor harassment stops
  • Debt judgment lawsuits stop
  • No wage garnishments
  • Begin rebuilding your credit immediately after the bankruptcy process is complete
  • You continue to accrue outrageous interest and fees for payday loans
  • You may have to take out additional payday loans to pay the interest on the first payday loan
  • Financial shortfalls mean you will continue to accrue bank overdraft fees, which will only worsen the financial crisis
  • Frequent creditor phone calls to your home, your workplace and your family
  • Any of your creditors can bring a lawsuit against you at any time and can garnish your wages after receiving a judgment for the amount owed
  • Your credit rating will continue to fall as you accrue more debt and make fewer payments

Take Control of Your Debt — Call 866-793-5226 for Practical, Accurate Advice

Payday loans and overdraft bank fees are an excellent sign that you should no longer ignore financial troubles. The sooner you take action, with help from a skillful bankruptcy lawyer, the sooner you can get a fresh start on a foundation of financial stability.

To make an appointment with a Redman Ludwig bankruptcy attorney, call our Indianapolis law offices directly at 317-489-5832 or 866-793-5226 or reach us online by completing the brief form located on the contact us page of this Web site. We offer reasonable payment plans and will deduct initial consultation costs from your fee should you decide to retain us.

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Redman Ludwig, P.C.
151 North Delaware Street
Suite 1106
Indianapolis IN 46204

Indianapolis Law Office

Phone: 317-489-5832
Toll Free: 866-793-5226
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Fax: 317-636-8686
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