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Teleport · #1 09-20-2005, 09:40 AM

Quote:

payday loan consolidation, settlement. How easy it is to consolidate one?

I didn't know you could consolidate a payday loan. I thought that's why there were called payday...and that they had to be paid back the next pay ?eriod. That no extra time should be needed?

-Mike

twokidtwocat · #2 09-21-2005, 11:30 AM

In keeping with the topic,someone posted before that they had worked out smaller payment plans with some of their payday loans.Can anyone list some of the payday loan services that will work with you from your own experience with them.They even went as far as to say that one company wrote off the loan since they had payed so much in interest over the months.Has anyone tryed this?

Teleport · #3 09-21-2005, 01:25 PM

OK...so then as I'm understanding this

basically consolidate it directly with the lendor. I understand more now. I personally have not tried this, but have heard about someone who, because of the intested they've paid, had it written off.

(edited 4 hours later...twokidtwocat--just read your comment twokidtwocat...hopeufully someone will let us know if this haas happened to them.)

-Mike

roxette · #4 09-21-2005, 02:14 PM

Creditors will be willing to work only if it is not sold to the outside collection agency. In my honest opinion, even if you are not able to pay the total amount, you should keep paying something towards the accounts. Doing this, the account won't get charged off and thus it won't be sold to any external agency.

Regards
Roxette

Teleport · #5 09-21-2005, 03:04 PM

Roxette-

I totally agree. But when most payday loan places won't give you their address and say only payments through western union are accepted it becomes hard for people.

But payinng something...even $25 a week will keep the account from being sold. But even on the off chance it is sold...you need to have everything you've paid. Western Union confirmation numbers...etc.

-Mike

roxette · #6 09-21-2005, 03:20 PM

Right Mike, you are absolutely correct with your words.

When most payday loan companies won't give their address and state that all payments should be made through Western Union, I should be suspicious at that moment. I will really like to research more on that company. Comparatively, there are many other companies in the market who give the consumers the options to make payments at their ease.

Mike, let's see what others have to say on this. By the way, how are you doing today?

4u.bryan · #7 09-21-2005, 03:26 PM

payday loan consolidation is, undoubtedly, a very controversial topic. The conventional way of consolidating unsecured debts does not apply to them. The process that these payday companies follow is buggy from the beginning. They usually approve the cash without checking the borrowers' financial standing.

What I feel, the prearranged line of credit, like depositing PDCs, makes these payday loans somehow different from unsecured debts and that is the reason debt consolidation companies are not willing at all to work with them.

Those who are already trapped by these paydays should try to pay it off even by maintaining a really hard budget or keep it current as Roxette has mentioned, until some agency shows the bravery to consolidate payday loans.

Teleport · #8 09-21-2005, 03:34 PM

Roxette

I'm doing great...thanks. How are you?

Quote:

Originally Posted by bryan

The process that these payday companies follow is buggy from the beginning.

So what happens when the payloan companies are accepting your payments, but at the same time charing you the payday loan renewal fee. The payday loan company that I dealt with didn't have renewal fees. They just charged you the $58 ($29x2) NSF fee. They'll do it first time, then again one more time before turning it over to collections.

What are some other problems or situations people have had to deal with?

-Mike

roxette · #9 09-21-2005, 03:45 PM

Hey Mike, I am doing well and enjoying the forums...

I have never been so much addicted to this forum as I have been in the recent times. Thanks to you and the community.

I am waiting to hear from Bryan. He wants to say something, I guess.

4u.bryan · #10 09-21-2005, 04:08 PM

Definitely I want to say something Roxette. I have never dealt with payday loans personally. Whatever experience I have gathered from my surroundings makes me feel that the credit approval process should never be as easy as it is in case of payday loans.

The lenders do not check borrower's credit report, just disburse the amount. It is well understood that unless one is badly in need, will not go for a payday loan. Then what is the guarantee that the borrower will return the money? And what is the basis to approve the loan?

Teleport · #11 09-21-2005, 04:35 PM

Bryan

Quote:

Originally Posted by Bryan

The lenders do not check borrower's credit report, just disburse the amount

I don't think a borrowers credit should have anything to do with their credit score when it comes to payday loans.

Every now an then someone will need some. Only because a checking account is needed and job verification is also required prior to getting the loan. The only problem is when they take their money back. Usually being super early in the morning because they are going by their countries time.

Most payday loans only want to make sure there is a valid checking account available. They don't care the name or the circumstances. If someone says they have a job...then they'll say it's on them come time to take their money back.

-Mike

Teleport · #12 09-21-2005, 04:57 PM

Byran

I think the payday loan companies were made specifially for people who had credit problems. I peronally could not qualify for a $1000 loan from y credit union. That's usually the lowest loan the give.

So with it being a payday loan...no credit needs to be checked. Just validation of employment and a checking account.

Do you think more should be verified. To see if they are delquent on any current accounts. I know that some payday loans will check to see if they have any other payday loans out.

if this is the case, how do some have more than 7 payday loans out.

I hope we're still staying on topic.... somewhat. But this is a good topic.

-Mike

4u.bryan · #13 09-21-2005, 05:31 PM

Quote:

Originally Posted by Mike

I think the payday loan companies were made specifially for people who had credit problems.

I do admit it. Those who are not eligible for a loan otherwise get it approved from a payday lender.

But, if their intention is to help those who are in trouble, then why the interest rate is so why? Also, they can extend the loan term, so that people with poor credit really find it favorable.

4u.bryan · #14 09-21-2005, 05:41 PM

Quote:

Originally Posted by Mike

I hope we're still staying on topic.... somewhat. But this is a good topic.

Agreed... But we are gradually deviating from the true path. Let's come back on the right track

Teleport · #15 09-21-2005, 06:16 PM

Quote:

Originally Posted by Bryan

Also, they can extend the loan term

I have yet to see a loan extend the loan term except for local loan companies who have an actual written posted dated check.

How can they extend the loan term? Do they add on an extra broker fee of $98 or whatever it is per payday period. Isn't that the same as 2 NSF fees?

-Mike

Vikas · #16 09-21-2005, 06:20 PM

Since we are not offering payday consolidation or settlement you can mention few company details which do that.

When I calculate the interest rate for a payday loan I go mad, 400% , 600% , even up to 800%. I can't compare a home equity loan at 6% with a payday loan at 750% interest rate :shock: .

Consolidation is a difficult task as you sign an agreement favoring the creditor. I will put the details on why debt consolidation companies are avoiding payday loans.

Vikas