Payday lenders are licking their chops in anticipation of another loan increase
AUBURN, Calif .– (COMMERCIAL THREAD) – As pandemic unemployment benefits expire and moratoriums on evictions, car foreclosures and collection of student loans and other financial obligations rise, payday lenders eagerly anticipate a wave of news loan activities.
“The payday lending industry saw a 40% drop in lending in 2020,” said Lyle Solomon, Senior Counsel for Oak View Law Group, a nationally recognized law firm specializing in debt relief services for consumers. “Now, as people scramble to find the cash they need to make their payments, these lenders are licking their chops in anticipation of the influx of new business coming through the doors.”
Payday loans, which are very short term, high interest loans typically in the amount of $ 1,000 or less, have been shown to be primarily used to help financially struggling consumers make ends meet. . These loans are considered predatory by many. With payday loan interest rates averaging 391% nationwide and 460% in California (source: Center for Responsible Lending), these loans can trap people in a vicious cycle of debt.
According to The Pew Charitable Trust, payday loan borrowers are typically between the ages of 25 and 49 and earn $ 30,000 a year or less. These borrowers spend an average of $ 520 in fees per year to repeatedly borrow $ 375.
Firms such as Oak View Law Group have created entire practices around debt relief and payday loan settlement services. “We are helping borrowers break free from the grip of predatory payday lenders and put them on the path to financial health,” Solomon said.
According to Solomon, there are several ways borrowers can get rid of payday loans. “The first step is for you, or your settlement company, to negotiate with your current lender (s) for a reduction in loan balances and a waiver of penalties and fees.
“Once these reductions are successfully negotiated, you will have the option of consolidating your debt into one loan with an affordable monthly payment, or entering a payday loan debt management plan, which will lower everyone’s monthly payments.” your loans and create a personalized budget plan to keep you on track while you pay off your payday loan debts. ”
Bankruptcy, according to Solomon, is a borrower’s last option because of the damage it will ultimately cause to personal credit.
To learn more about the services available through Oak View Law Group, visit OVLG.com or call (800) 530-6854.
About Oak View Legal Group
Founded in 2007, Oak View Law Group is a national law firm specializing in providing debt relief services to troubled consumers. The company has successfully helped over 7,000 customers and prides itself on customer satisfaction, backed by its 100% No Questions Asked Refund policy. The firm currently has more than 100 practicing lawyers and offices in 7 states, including California, Florida, Illinois, Minnesota, Missouri, New Jersey and Tennessee. www.ovlg.com