When to send settlement letters

You need to be aware about the laws in your state. How much have you paid on these accounts so far? Most lenders will not accept any settlements until you have paid them half of the borrowed amount. As they are internet lenders, they have to be licensed in your state and do the business in the fair way by adding legal charges.

Send the settlement letter anytime you like. What is the present situation of these accounts? If you can tell a little more, the advice will go in the right direction.

I have five payday loans that are current until Nov 30th that is when they are suppose to either extend or pay off depending on what I chose. I'm closing my account so I expect to hear from them soon after. here is a snap shot of my loans:
paydayok $500 paid $293 in extension fees and interest
cashcentral $500 paid 339 in extension fees and interest
paydayselect $500 paid 125 in fees and extensions
cashnetusa $500 paid 356 in extension fees and interest
tendollarpayday $300 paid 360 in extensions and fees

I'm paying so much that I haven't been able to pay my normal bills and so that is why I've decided to default. I'm just so scared that i will go to jail.
can they do that in Minnesota?

Jail is not a problem. While there are some ways you could land in jail, they have to do with not responding to a lawsuit (and are rarely used). You don't go to jail just because you owe a debt. That's a bit medieval.

For starters, stop getting payday loans! There are far better ways to come up with operating cash, and at better interest rates. Prosper.com is one option that comes to mind. Or better yet, pare down your spending to the bare minimum, and live within your means (easier said than done, I know).

Hopefully the debt counselors here will be able to help you find a way to consolidate and avoid needing further loans.

If you do end up in collections, you have a lot of options.

Just remember that you have a lot of options even now. Don't start bending over backwards for your creditors, but find a way to methodically work through your debt.

I would start sending the settlement letters now. That way, when they get the first one, they will begin thinking about it. If they are like the others, then they will closed it out..

Thanks! I can't wait to get these payday lendors off my back, I can then work on my real bills, I can make it financially if I didn't have these payday loans, but my transmission went out and I couldn't get a real loan so I made the hugh mistake of taking out these payday loans and wam! I'm sinking but not for long!

Joy dont beat yourself up over this we have all been there. I couldnt get a loan either and thats how I ended up. Thankfully I am free and never want to see another one. Best Wishes Keep us posted KYSIDE38 :D :D

Joy, I contacted PaydaySelect and PaydayOK by phone and got the accounts closed and marked as paid in full. Here is the #I called (866) 612-4506 option 3 and ask for a supervisor.

that is amazing! they didn't fight you?

No, I made a call on Monday evening, then kept calling until Thursday evening when I spoke to Lillian or Lilly a supervisor. She took all my information and I got a call at work Friday morning saying it was marked in full. I am now trying to get a refund.