Texas Payday Loans Debt Relief

Texas is one of the states that allows payday loans, which are short-term loans with very high interest rates and other fees. These loans are predatory and trap borrowers in debts and loan cycles that many Texas citizens can’t afford. However, in most cases, a payday loan can be discharged in bankruptcy. That’s where we come in - our Debtstoppers attorneys will help you get the most out of your bankruptcy and we’ll do everything possible allowed by the law to get you out of this vicious payday loan cycle.

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How to Get out of Payday Loan Debt?

We all know what it’s like to try to find the cash to pay for an unexpected expense. Whether your car breaks down or your kid needs to get braces, it can be more than challenging to cover these financial surprises. If you're one of the millions of Americans who are surviving paycheck-to-paycheck, these little bumps in the road can feel like mountains.

When you need some help to get by, you might think a payday loan is your best bet. Even though these loans seem quick and effective, they are nothing more than high-interest traps set by predatory lenders looking to take advantage of you in your hour of need.

When you find yourself trapped in payday loan debts, Texas bankruptcy laws can set you free. Call or text DebtStoppers in Dallas Fort-Worth today at 469-646-0750 to request a free legal consultation with one of our skilled Texas bankruptcy lawyers.

Texas Payday Loan Laws

Payday loans are high-interest, low-dollar loans that come at much too high a price. To take out a payday loan, you’ll give the lender a post-dated check or electronic bank transfer authorization form. You’ll get cash on-the-spot— with an excessive fee and interest rate deducted.

Generally, these types of loans are short-term — typically until your next paycheck. When the due date rolls around, the lender will give you two options:

Pay the balance through the post-dated check or electronic funds transfer.
Roll over the balance for another term.

Since the amount of time given to repay payday loans is so short, people often can't afford to pay back their loans on time. In this situation, borrowers have no option but to roll over the balance and rack up another fee.

Statute of Limitation Laws in Texas

Under Texas laws, the statute of limitations on payday loans is 4 years. This means that if you default, the lender has 4 years to sue you for the balance. If they don’t initiate a lawsuit within this period, they can’t sue you at all. Unfortunately, lenders rarely let the statute of limitations expire.

What About a Repayment Plan?

It’s incredibly easy to fall victim to a predatory lender. Texas laws place very few regulations on these lenders, making it even easier for you to get in over your head. There are no laws in place that require a lender to offer you a reasonable repayment plan, meaning you’ll have to negotiate directly with the creditor to try to get a plan in place. Even if you can talk the lender into giving you a repayment plan, you’ll still be stuck with all of the other debt that got you caught in the payday loan debt cycle in the first place.

Bankruptcy Laws Can Help You Deal With Debt

When bumps in the road cause your life to spiral out of control, don’t turn to a predatory lender. Instead, call or text DebtStoppers today at 469-646-0750 to schedule a free debt relief analysis. Our experienced Texas attorneys know how to use bankruptcy laws to help you escape from the traps set by predatory lenders.

If you’re tired of struggling just to scrape by, it’s time for you to deal with your debt situation head-on. Call or text DebtStoppers at 469-646-0750 today to get started!

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