Steven J. Richardson
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Bankruptcy, Collections, Student Loan, DUI and Traffic Court attorney in Woodbury, NJ.

The Great Recession has a lot of people out of work and desperate for money to get them through a short term cash crunch. Even those that have jobs are facing a loss of overtime income (with no reduction in living expenses) or paycuts that stave off layoffs.

Under these circumstances, and combined with a low credit score, people are turning to solutions that, while promising a short term fix, result in a long term problem.

Two Bad Solutions!

I have written recently about two of these traps, "payday loans" and "car title loans." Both of these often carry usurious interest rates under New Jersey law and should be avoided at all costs. These companies would not be charging such high interest if they did not think there were enough people out there desperate enough to pay them.

If you have a car that you own free and clear, go to your bank and see how much they would be willing to lend you with the car as collateral. It may not be much, and the interest rate will be high (a credit score in the 500s may have you paying over 18% interest), but it is better than the hole you would dig with a title loan.

If you find yourself in a situation like this where you need money fast to get by, or are trying to stave off bankruptcy, consider your options very carefully and do not automatically assume that you cannot go the route of a more traditional loan. Getting a loan with an insanely high interest rate or raiding your pension/IRA for money will just make matters worse.

A Better Solution

Want more information on how to fight back with your creditors? Then download my free book, The Biggest Secrets Your Creditors Don't Want You to Know. Become empowered and protect your rights!

If you live in southern New Jersey and want a lawyer to represent you against your creditors, call my office at 856-432-4113 or contact me through this site to schedule an appointment in my Woodbury office to discuss your matter. I have represented creditors for many years and am familiar with the collection industry and how it ticks. Put my experience to work for you!

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