Cash Advance Trap

If you are already thinking of filing bankruptcy, go for credit counseling first. You will have to sit for this counseling before it is decided whether bankruptcy is the option for you. One has to qualify in the means test before debts are discharged.

Go through each of your pdl accounts and calculate the total payments done till date. Check the laws in your state if the company has added charges legally. Which companies are you dealing with? Check for their licensing info to know about their legit business before you do anything that's going to hurt your financial identity.

bcity -

Definitely take the advice offered by Bony above, and look into debt consolidation or credit counseling before going into Bankruptcy. No matter which Chapter of Bankruptcy you file for (7 or 13), it is an expensive "fix" to your problems, and the damage to your credit is long-lasting (they remain on your credit report for 10 years for a Chapter 7, 7 years for a Chapter 13). The days of a quick, cheap bankruptcy filing are over. The new laws enacted a couple of years ago put an end to that. You must undergo a means test that compares your income to your debt load - and if the test results show you have enough money to pay back your debts over time, you will be put into a Chapter 13, not a Chapter 7. This is called a "wage earner" filing, and a percentage of your GROSS income (not your net!) will be garnished and sent directly to the Bankruptcy Trustee, who will then disperse the payments to your creditors. This plan will last 3 to 5 years - meaning you will be living on a much-reduced income for the length of your plan.

You absolutely need to be sure your basic needs are covered first - roof over your head, food on the table, clothes on your back, electric/heat/water in the house, and transportation to and from work.

Since you have registered with this site, a consultant will contact you soon to discuss your situation and offer options for debt consolidation or settlement. You are not obligated to use their services, but it's a start. If you feel their program won't work for you, you might want to check out other agencies in your area. We have a ranking chart of agencies listed by state:

http://www.debtconsolidationcare.com/ranking-chart/

Good luck, and please feel free to ask any other questions you may have - and keep us posted on your progress!

Thanks Bony and Suebeehoney for you help. My biggest concern is the pdl people running those checks through my bank. I don't have the money there to cover them so and my credit union does not offer overdraft protection, so I will be charged a fee each time they come through and that will not help me either. I am waiting on my call from the debt consolidation chosen for me, because I really don't want to file bankruptcy.

Can you post the name of the pdl companies dealing with? What state are you in? While I try to find out more information about the pdl companies, you have a look at your bank statements and find out the total money paid towards each of them. All states have their specific laws on pdls. You need to go through the fine print and verify if the loan company added charges and interests according to the laws of your state.

Bony, here goes:
Family Check Advance, Cashmaster, Advance America, US Fastcash, Cash Express, Quikcash I think that's all :-) (gotta find a ray of sunshine somewhere). I don't quite understand what you are saying when you tell me to check my bank statements. None of these (except US Fastcash) hits my bank account directly. I usually go to each of the local pdl's and "roll over" (pay the fee to hold them) each check.

thanks 4 your help....

Please tell the name of the state where you live. As per the state laws, there are some restrictions on roll overs. While few states don't allow roll over at all, other states allow it up to three or four times. It is necessary to know if these loan places are following the laws in your state. You just need to pay off the principal amount and stay away from them.

I live in Tennessee. The problem is, right now, I can't pay them off. This pay period I couldn't even pay the fee. Only one of them has a limit as to how many times you can just pay the fee, but all you have to do is leave the full amount there for 24 hours and you can re-write.

bcity - I may have missed this somewhere, but have you closed your bank account, to prevent more debits and overdraft fees, and to regain control of your money so you can repay what you owe on these loans? That's an important step in getting these taken care of. If they keep debiting your account, you'll never have the money to pay them off.

Talk to your bank or credit union manager and explain the situation. Tell them you want to close the account and open another.

Here are the state laws for Tennessee.

http://www.debtconsolidationcare.com/paydayloan/explain-pdls-laws.html

Okay, Pink Lady, I'm getting scared. I have more than $500 or 3 pdl's. Each time I've gone to redo the loans, I shred the documents, so I have nothing to show me any of the rates. I talked to Advance America today and she's holding my check until my next payday. I guess I've got to get some guts. I've been dealing with them for about 3 years now (off and on) and I really want to pay them off, I have this fear of them NOT willing to work with me.

Boney, no I have not closed my account. I will contact my credit union to see if I can close the checking acct that I have and open another one with them.

bcity--If it is possible for you, I would recommend opening the account at a completely different bank. That way there is no chance that the bank will re-route the debits to your new account. otherwise, you should ask the bank to restrict ACH debits to your account to keep them from accessing it without your permission.

Bony, I just called my credit union and I can close my current account and open another one. I'm doing it in the morning.........

Hey Jessi, I know you are going to think I'm being a baby :-) but I love the people I deal with at my cu. I've been there for 11 years and am on a first name basis with all of them. I gues I just don't want to start over :-)

bcity, Welcome to the forums. Jessi was giving very good advice because sometimes when you open at same place the transactions will go thru. Dont worry about US Fast Cash because they are internet and most likely are not licensed there anyways. I would try and see what kind of arrangements that I could make with the storefront ones. They can take you to court for a judgement. Most will work with you. Let us know how you are doing. KYSIDE38

Hey Kyside, I have gotten the nerve to contact one. I'm going to call the others today. I'm hoping they will work with me, but I have so much more debit than just the pdl's. :-(