As people in New Jersey know, it can be difficult to make ends meet when financial pressures mount. This has been true for many families in our state over the past few years as the national recession has raged on. These financial difficulties have led to an expansion in the number of pay day loan operations opening in every state in the nation, including ours. Now one report notes that the opening of these types of stores may also have led some to file for a personal bankruptcy.
Jobs have been lost and home values have fallen in New Jersey. When these types of life changes happens to a person, they must work to make ends meet. Some find it necessary to take out pay day loan that charge high rates of interest, often making them almost impossible to repay. In fact, there are as many as 12 million people a year taking out these types of short-term loans.
In fact, a recent report notes that some $3.3 billion in interest was paid to these types of payday loans in 2011. This amount is money that could have been used by families to help pay for the expenses of everyday living. The good news is that some people have found that they can escape the charges of pay day loans through the personal bankruptcy process.
Though it is a tough decision for some people to file for a personal bankruptcy in New Jersey, many find it the best choice. This is because there are not only options available that can fit every financial situation, but there are many benefits such as the limiting of creditor collection efforts that are included in the personal bankruptcy filing. Because financial relief can be offered by such an action, a bankruptcy is many times the best choice for a family or individual who finds that they cannot repay high debts.
Source: sfltimes.com, “REPORT: PAYDAY LENDING DRAINS NEARLY $1B FROM LOW-INCOME COMMUNITIES,” Charlene Crowell, May 2, 2013