Payday loans playing the scape goat again

The Associated press released an article titled Brother, can you spare a payday loan? It’s pretty much making a case against payday loans. The point here is the hypocracy of it all. Many people do not have a problem with credit card balances and medical bills, but payday loans are somehow different.

Notice in the example they use in this article:

The Kroekers’ problems began in 2006 and snowballed until their January 2007 bankruptcy filing. When the couple filed for bankruptcy, they had a mortgage, credit card debt and medical bills to pay. They also had nearly $2,000 in payday loan debt, plus hundreds more in fees and interest.

Don’t bother telling us their credit card and medical bill balances because it would not make these people look like the victims they want us to believe. The reality is that these people did file bankruptcy and got out of paying everyone, including the payday lenders. So who is the victim. I’ll go a step further and say that these people would file bankruptcy with our without payday loans.

My brother, Gus, is a bankruptcy attorney. I asked him if a lot of his clients have payday loans. I was surprised to learn that they did not. In fact, he agreed with a comment I made that most of his clients will take out a payday loan to pay his attorney’s fees right before they file. Since they’re payday debt is within 60 days, it typically is not included in the bankruptcy.

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