Today the New Hampshire house passed HB 267, legislation that puts a cap on the interest rate for small loans given out by payday and title lenders. As on January 1, 2009, the date that the bill becomes effective, lenders may not charge more than 36% annualized. The bill also limits the eligibility of borrowers by restricting the number of times that a borrower can utlize a payday loan.

Although these types of loans can be a valuable way to manage an emergency, the loans can create a cycle of debt that the borrower can not break free from. Especially during a divorce, as pressure mounts to make ends meet, it is important to make good choices in the type of debt that you incur. Whether you are using a credit card, a payday loan, or a loan from your 401(k), read the fine print and make sure you understand the ramifications of the debt that you are taking on and the fees and costs that are associated with the debt.