Payday loan settlements - Reduce your debt and get rid of stress
If you've racked up payday loan debt and you're unable to meet the monthly payments, you may negotiate a settlement with the pdl lenders. Payday loan settlement enables you to get rid of your dues by allowing you to pay less than the balance you owe. With settlement, you can get out of the payday loan trap and avoid further harassment by pdl lenders and collection agencies.
How payday loan settlement works
You can co-ordinate with pdl lenders or collection agencies and settle your bills on your own. Make sure you know how much you owe in total. Just check your credit report to find out which bills are unpaid and whether the accounts are well past the SOL. Know how to settle your debts yourself.
In case you don't feel comfortable negotiating with lenders/CAs, you may take advantage of settlement services. Such services enroll you in a settlement program which requires you to stop paying your pdl companies so that you can save a certain amount each month. When you've accumulated enough cash for several months, the negotiator at the settlement company communicates with the lenders or CAs (whoever holds your accounts) so that they agree to accept an amount less than what you owe. Find the details on how debt settlement works and know about the pros and cons before you enroll in it.
Benefits of payday loan settlements
When you settle your pdls, you get the 3 benefits, as given below.
- Pay less than what you owe: When you go for settlement, lenders/CAs would generally need you to pay up to 40-60% of the dues you owe, and forgive the remaining balance. So, if you're in financial distress or you're in hardship, settlement can help to eliminate your dues.
- Get relief from harassment by lenders/CAs: When you're in a pdl settlement program, you don't have to deal with lenders or collection agencies. That's because your negotiator manages all communication on your behalf. When lenders/CAs find you interested to pay at least a certain percentage of the balance, they're likely to stop harassing you with repeated phone calls.
- Stay away from legal actions: With payday loan settlements, you can avoid being sued by lenders. Pdl companies may not appeal to court for a judgment against you. You can thus avoid getting a lien placed on your home or having your wages garnished.
In spite of the fact that settlement helps consumers reduce their debt burden, there aren't many companies offering payday loan settlements. This is because the interest rates on pdls are so high and the fees add up so quickly that it gets difficult to negotiate and reduce the balance to an amount that the consumer can afford to pay. So, most debt relief companies offer payday loan consolidation programs instead of settlement. Payday loan consolidation doesn't help to reduce the principal debt balance but it lets you obtain low rates of interest on your pdls. Moreover, the consolidator negotiates with your pdl lenders to cut down or eliminate late payment fees incurred on your accounts. The best thing about pdl consolidation is that you can clear your bills with a single monthly payment instead of making several payments each month.
Related Forum Discussions
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#1
09-20-2005, 08:40 AM
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Payday loan settlements - Reduce your debt and get rid of stress
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-Mike 
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#2
09-21-2005, 10:30 AM
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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?
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"No amount of time can erase the memory of a good cat, and no amount of masking tape can ever totally remove his fur from your couch." Leo Dworken
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#3
09-21-2005, 12:25 PM
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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
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#4
09-21-2005, 01:14 PM
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Senior Member
Join Date: Mar 2005
Posts: 4,126
Credits: 51,665
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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 __________________
Debtconsolidationcare offers free counseling and help, please avail the services before taking any major decisions.
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#5
09-21-2005, 02:04 PM
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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
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#6
09-21-2005, 02:20 PM
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Senior Member
Join Date: Mar 2005
Posts: 4,126
Credits: 51,665
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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? 
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Debtconsolidationcare offers free counseling and help, please avail the services before taking any major decisions.
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#7
09-21-2005, 02:26 PM
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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.
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#8
09-21-2005, 02:34 PM
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Roxette
I'm doing great...thanks. How are you? Quote:
What are some other problems or situations people have had to deal with? -Mike
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#9
09-21-2005, 02:45 PM
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Senior Member
Join Date: Mar 2005
Posts: 4,126
Credits: 51,665
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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. __________________
Debtconsolidationcare offers free counseling and help, please avail the services before taking any major decisions.
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#10
09-21-2005, 03:08 PM
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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?
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#11
09-21-2005, 03:35 PM
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Bryan
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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
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#12
09-21-2005, 03:57 PM
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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
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#13
09-21-2005, 04:31 PM
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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.
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#14
09-21-2005, 04:41 PM
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#15
09-21-2005, 05:16 PM
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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
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#16
09-21-2005, 05:20 PM
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Since we are not offering payday consolidation or settlement
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  .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 __________________
2nd year law student at John Marshall Law School ============================================ DebtConsolidationCare - Largest Community of people in debt. Follow Debtcc community on Twitter
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