Your Creditor is Not Your Friend

Posted on Mar 27, 2015 By Joshua Lawhorn

Josh Lawhorn Mississippi Bankruptcy AttorneySometimes, clients are hesitant about including creditors when seeking debt relief. One reason is that they believe the creditor has their best interests in mind. It is not uncommon for people to believe that their creditors are their friends when that could not be further from the truth.

Don’t get me wrong, a fair and helpful lender can make a huge difference in your life. However, when a borrower falls on hard times, it is rare that a creditor will be friendly. Even when a creditor does seem to be “giving you a break,” it is usually due to the fact that they know it is the only way they will be paid.

On more than one occasion, a client has stated that their payday lender has been good to them so they want to be sure that particular lender gets paid. This always surprises me because I know what the interest rate is on these types of loans. It is common to see an annual percentage rate of 400% and not uncommon for it to be even higher. I hear the same thing from clients about high interest car loans and rent-to-own contracts.

Another dangerous occurrence is a creditor giving you financial advice when you are struggling with your bills. It is important to remember that the creditor’s first priority is its business and making a profit. Any advice given is probably geared toward ensuring that their interests are protected, especially if they are afraid that you will be unable to make a payment. Make no mistake, if you fall behind on your payments you can be subject to repossession, garnishment, and harassment. None of these are very friendly.

Thankfully, we can stop any unfriendly creditor conduct. If you find that your financial obligations are overwhelming or impossible to meet, we can help. Our experienced attorneys are ready and willing to assist with the economic problems you are facing. Please call our office nearest you to set up a free and confidential consultation.