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Will Government Shutdown Drive Furloughed Workers to Payday Lenders?

Since the U.S. Government partially shut down, an estimated 800,000 government employees had their incomes put on hold while their financial obligations continue.  As a result, many government employees may turn to short term high interest credit such as payday loans and credit cards in order to pay their bills.

Approximately 12 million Americans take out payday loans each year.  Payday loans are generally less than $500 and are intended to cover a borrower’s costs until the next payday.  However, the average borrower ends up indebted for almost half a year and pays on average $520 in finance charges on a $375 loan.  Only 14% of borrowers can afford to pay the full payday loan by the time they get their paycheck.

For more: http://blog.credit.com/2013/10/will-the-government-shutdown-lead-to-a-spike-in-payday-loans/

If you are feeling overwhelmed by credit card or payday loan debt, it is possible to negotiate a settlement of a fraction of what you owe with our law firm.

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Kevin Fallon McCarthy is the McCarthy Law PLC’s managing attorney and an experienced Phoenix debt attorney. Mr. McCarthy has also worked as general counsel for a large corporation. He has corporate counsel experience in human resource matters, general corporate governance, and union class action litigation.