I've had loans with Ameriloan and Genivia as well as others, two years ago. I had 6 loans and it got to the point all I could do was pay them every pay day, then go back and get a new loan to pay the bills and there was no way to stop the cycle. I couldn't pay most of my bills, such as credit cards.
I stopped paying the payday loans altogether. I didn't put any money in the Bank so they would bounce. Sometimes they would put it through 2-3 times. Then the bank closed my account.
I put myself on a budget, after the mortgage, elec, water, gas, groceries and credit cards, I determined what was left that I could start making payments to the Bank and payday loans.
Then when the payday loan company called me I set up monthly payments until they were paid in full. They asked why I couldn't pay it and I told them my roommate lost her job and I had to take on all the rent (was true). You can give any excuse such as illness. I also told them I had 4 payday loans and couldn't pay them much as they all wanted payments every month. I advised them how much I could pay them each month until they were paid. They tried to get more than I could give them, but I just stood firm in what I could pay per month. It took several months but they are all are paid back now. There was one I couldn't make any payments on until one of he others were paid off. So as soon as one was paid I called the the last one and made arrangements with them. One of them didn't even call me until just this month. The principle of the loan was 500.00 and they wanted to charge intrest and other fees which was over 1000.00. But if I paid w/i 30 days I only had to pay the principle. So after two yrs I have now paid the last one.
Since this time, I no longer write checks. I do have a bank account, I pay my bills online or with a money order. And I'm working on a better credit score.
This was a very scarry time and I had a lot of anxiety, was always worried about all of this. I don't know if payday loans report to the 3 credit companies but the bank and credit cards do. So they were my first priority.
If your credit allows you too. I'd recomend a personal loan, enough to pay off the payday loans. Or call each payday loan one by one and tell them due to loss of job (or something) you don't have the money to pay them the next pay date. They will tell you what will happen.
In my experience if you let the pay day loans bonce, then call them to say it bounced and ask what you can do to make montly payments to pay it off, they will work with you.
Since your bank keeps opening the account when they get an EFT they will keep charching you insufficient funds. And the pay day loan will keep putting them through but I know with Ameriloan when I called and explained that it bounced and that my roommate lost her job and I had to pay all the rent and bills and didn't have anything left over they worked with me and set up a monthly payment.
If your credit is being hurt by not being able to pay other bills, then it can't be hurt much more by taking all your money out of the bank and let them bounce, bounce, bounce.... Then work on paying the bank back and the payday loans one by one.
Just my opionon and what I did to get out and under these loans.
Cheryl from Iowa
Make sure you don't keep any money in your bank account, if you get your pay checks direct deposit. Stop that and get a paper check, you can take the check to the bank the check is written on to cash it. If employer doesn't allow paper checks then ask a family member (sister, etc) to allow you to deposit the check automaticly in their account and have them draw the money out for you to pay your most important bills (Mortgage, elec, water, credit cards).
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and once I have asked them for Licence and copies of my debt, they are dumbfounded!! So we will see what happens with those.... and it is working for most of them. However, it is not working for GECC. They have sent me to Alliance Asset Management. This place is a JOKE!!! I just laugh at them, they call 6+ times a day, I answer my phone every time, listen to the same speech that they read from a computer screen. How silly. The 12th time they called this person told me I will go to jail. Well I put 2 reports to the FTC, and I am sending not only GECC a letter but also AAM. Has anyone seen the calls stop from AAM after you send a letter?
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