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Desperate in Alabama

My husband and I have a total of four payday loans, two at one place and two at another. One is called Advance America and one is called Express Cash. Express Cash is just a little local loaning place.

We pay $300 approx. in fees each month. Our income, only income, is his/our kids $1251 per month in disability. Our loans are for $500 - $87.50 fee, $450 - $78.75 fee, $350 - $61.25 fee, $400 - $70 fee. We have had these on our backs since March of this year. We had them before then for about a year each, but were able to go without borrowing in February when income tax money came in. I can't find a job, last day worked was in March.

We just our car repossessed last night because our car payments went to cash advance places. We recently closed the checking account that the cash advance places have on file but the only bank that would open another checking account for us was the same bank. We had to have something opened so my husband's (and our children's) disability from the gov't would have a place to be direct deposited.

We are on food stamps, have two school-aged children, now have no car, are three months behind on our house payment. We really really really need to get this $300 a month off our backs and I don't have a clue how to do it.

I know we have out more than the state of Alabama allows (no more than $500 per person at all loan places combined). With Advance America, we have "renewed" the loans on the same day we have paid them out (the third of every month) unless the third falls on a holiday. Then, Advance America makes us come in the business day before the third to pay it out and makes us come back the business day after the third to get more money. Other than that, it is always done on the same day. With Express Cash, we don't leave a signed check. We have to sign some sort of statement that allows them to debit our specified account if we do not come in and pay it out, etc. With this place, they have a "pay down" plan where, after eight payments, you begin to pay down the loan. Well, since we only have to pay once per month, this takes eight months to accomplish.

So, any tips? Ideas? Hints? Anything would be helpful!!!

Posted: Thu Aug 28, 2008 11:37 am Subject: Forgot something

I forgot to mention that my husband recently added a hundred dollars to his loan at Express Cash which started the whole eight month pay down plan over again. That was done on Aug. Third. He also increased the loan with Adv. Amer. in July. That was a $50 increase.

Posted: Thu Aug 28, 2008 11:47 am Subject: me again---totals paid

We pay 17.5% each month per $100. for our fees. So this is what it all breaks down to in case anyone needs to know. In March of 2008, I got a loan for $500 at Adv. America. In March of 2008, hubby got one at same place for $400. In March of 2008, I got loan at Exp. Cash for $350. Hubby got one at same place for $300. For April, we paid the loan amounts plus the fees. Just the fees were $271.25 all together in April. For May, we paid $271.25 all together for fees. For June, we paid $271.25 all together for fees. For July, we paid $271.25 all together for fees. Then, hubby increased loan at one place from $350 to $400 at Adv. Amer. In August, $280 was paid in fees. And, that month, hubby increased the Express Cash loan another $100. On Sept. Third, we will have to pay $297.50 in fees.

Posted: Thu Aug 28, 2008 11:57 am Subject:

Pennyhm, you need to save your house and get that car back!

I would call a bankruptcy attorney ASAP so that they can get the car back and stop the forthcoming foreclosure. You need to secure your living situation, mortgage, car, food, gas first before paying any unsecured creditors.

Seeing as you are on disability, you might be able to file BK for little or no cost.

The other options are to see if you can borrow from friends or family, but I understand that this is usually not an option.

Posted: Thu Aug 28, 2008 11:59 am Subject: probably can't get car back

We'd have to come up w/ about $1500 to get the car back (three months in payments, towing and storage).

Posted: Thu Aug 28, 2008 11:59 am Subject:

Unfortunatly, this is not a good situation to be in.

All the loans are legal loans. And, in your state, there is the chance of bad check charges for closing your account with outstanding payday loans.

It doesn't look like these places are breaking any laws with the loan terms you've described.

That being said, you need to stop paying on these loans before you lose anything else. These are unsecured consumer debts, and are not worth paying over your house payment. Worse comes to worse, you will have a judgement on your record.

Posted: Thu Aug 28, 2008 12:02 pm Subject: re:

Pennyhm, under BK, they can work something out to get the car back. Chap 13 will let you repay your arrears, and under Chap 7, you can sometimes re-work your loan. Please call a BK attorney so you know what your options are.

Just b/c you talk with a BK attorney doesn't mean you have to file BK - they'll assess your situation and advise you on what options you have.

Guest · Posted: Thu Aug 28, 2008 12:06 pm Subject:

Without the $300 a month in PDL fees, would you still even be able to afford the house and car? On an income of $1200 a month, with secured debt (house) there is chance you could lose your house through BK if you are not able to keep up with the payments plus trustee fees on a CH13.

Posted: Thu Aug 28, 2008 12:07 pm Subject: bad check charges

We did not close out the checking account due to these loans. We were going to provide the new checking account information when we went back in September. What happens with situations like this? What are the usual fees and processes? Will we go to jail?

Posted: Thu Aug 28, 2008 12:07 pm Subject:

My understanding was if the car has already been repoed, a BK would not get it back. You would have to file before the repo to stop it.

Posted: Thu Aug 28, 2008 12:21 pm Subject:

Not necessarily. In some states there are provisions that the car can be returned if it is not sold already. For instance, some states require a 20 day waiting period if the borrower had paid more than xx amount on the loan. Usually once a car is repo'd it IS more difficult to get back. That's why many BK attorneys say to hide the car, etc.

More important in this situation is saving the house...with 3 months delinquent, the bank is going to foreclose soon and then where will they live?

Just speaking with an attorney won't hurt. It may give them options. I agree about letting the PDL's go and taking care of the necessities first. I wish them well in their situation and hope everything works out.

Posted: Thu Aug 28, 2008 12:23 pm Subject:

Another option...

Call your mortgage lender and ask them if you can be put into a hardship program. Sometimes they lessen the interest rate and re-amortize the past due amount. Talking to them may save your house. It's better than doing nothing.

Posted: Thu Aug 28, 2008 12:42 pm Subject: Called Mortgage Company & have PDL ?s

I called our mortgage company and have worked things out w/ them. Will be paying a payment with what would have normally gone to the payday fees. Have realized that the house (mobile home) is more important than those loans. Mistake we have been making for months thinking otherwise and thinking we could do it all, etc.

I still have some questions though. What happens when you just let a PDL "go"? What will happen with the PDL people when we don't come in to pay and they send the checks thru and the direct debit thru and they do not go thru since we closed the account a few weeks ago? We do not want to go to jail! Will the one place that has a direct debit authorization use our new checking account since the old one was closed out? Can they do that?

Posted: Thu Aug 28, 2008 12:47 pm Subject:

If your accounts at the same bank are linked, then yes it can overdraft to next account with availible funds. Make sure your accounts are not linked ASAP!! Confused

dane · Posted: Thu Aug 28, 2008 12:47 pm Subject:

BK would be your best option. Under BK, they cannot foreclose on your house, it holds all trustee sales, that'll buy you some time to get some things in order

Guest · Posted: Thu Aug 28, 2008 12:55 pm Subject:

It has become increasingly difficult to file BK and even through BK, if it cannot be shown that BK would resolve the financial situation and create a situation where payments can be made on time again,then BK is not neccesarily the answer.

Dane-BK will "buy time" as you put it, but if the payments via CH13 cannot be made or if the house is reaffirmed via CH7 and the payments arent made thereafter, then yes, they can foreclose.

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Car repo'ed due to PDLs/need help in AL/$300 a month in fees

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