Today I had a lady come in and sign up for a chapter 13 bankruptcy. She had other debts as well, but complained most about her payday loans. I had never had anyone describe them as a "revolving door." You think you are about to be done with it, but then you're not.

You go into pay them off, but then realize you can't because there is another fee, so all you can do it renew them. She said that even though she makes good money here in Houston, she fell into the trap of taking them out for necessities like food and utilities, while paychecks are all going to repay debts and payday loan renewal payments.

I've heard payday loans described as "quicksand" also. Like once you're stuck in them, you can't pull yourself out. Anyway, filing chapter 7 bankruptcy can discharge or cancel them entirely, if you qualify. The lady today made too much money to qualify for chapter 7, but at least by filing chapter 13 and repaying her debts, she can stop the interest. It's the 300% or 500% interest or whatever that keeps people in the "revolving door" or "quicksand" of payday loans.

J Thomas Black
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Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization
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