I have written here before about how Western Sky Financial is a really bad way of getting out of a bad financial situation, either in the short term or the long term. The commercial that they use here does not convince me otherwise, and although they do admit that their loans are expensive (an understatement!), they try to justify it by saying that it is "a lot cheaper than a payday advance." Wrong!

How Do the Rates Compare?

Let's compare their rates. Payday loans are, first of all, usually for amounts much less than the $5,000 mentioned, often no more than $1,000 to $1,500. Western Sky would charge you 234.25% over 2 years for a $1,000 loan. Thus you would end up paying $3,756.56 for that $1,000. How in the world is that "a lot cheaper" than a payday loan? How much more expensive would payday loans have to be if that were true? Ultimately, with what Western Sky is charging you, how is it a viable option even in this comparison?

It's Still Usury!

The second reason that a Western Sky loan is no better than a pay day loan is that they both violate New Jersey's usury laws and are therefore not legal! New Jersey has an interest cap of 30%, and the lowest rate offered by Western Sky is 89.68% if you commit to a loan for a 7 year repayment!

If you are considering a loan from Western Sky, a payday or car title loan, or some other shady solution, and have debt in 5 or 6 figures, this could be a sign of a much bigger problem. If you are wondering whether you need a better solution , then download my free book, Am I In Too Deep? A Guide to Knowing When You Need to File Bankruptcy in New Jersey to find out if bankruptcy might be the solution.

For more information about bankruptcy itself, download my free book on the top questions people ask. You deserve a financial fresh start!

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