Payday Loan Cycle...among other finanical issues
Date: Tue, 01/15/2008 - 16:42
I found this site while searching for information on debt consolidation vs. debt settlement and in reading through some of the treads, I've realized the first thing I should attempt to tackle is my recurring payday loans. Here are the particulars:
I am in San Diego, CA.
5 Payday Loans every two weeks and 1 additional every month. All are instore:
CheckMate - $300
Advance Til Payday - $300
Money Tree - $300
Cash N Advance - $300
Check Center - $300
Advance Check Express - $299.63 (1 a month)
On all of these loans, I receive $255 back on a $300 check. After doing the math, I spend roughly $500/month in fees (2 pay periods a month), as well as the gas spent driving all around San Diego each payday. On a salary of $1450 net/paycheck, that leaves me with about $1200 each week to pay credit card bills, gas, rent, car payment, insurance and to live on. That $500 could easily go into paying off more outstanding balances on credit cards (which I am falling behind on as we speak) and to pay for the extensive dental work I am having to endure.
Does anyone have any suggestions on how to end this vicious cycle? I read on a few posts where you can stop re-loaning and pay back these loans in installments. Is that available in CA? Would this allow me not to close my checking account and re-open one somewhere else? My bank has been quite good to me over the years (Credit Union) and I have been very careful not to have any overdrafts (also have $2000 in overdraft protection).
I really want to get me debt in control!!
Additionally, I am falling behind on payments to credit card companies and have found my interest rates being increased to 20-30%. I also have a $6000 personal loan through HFC that I am paying $230/month at 21% interest.
At times, being 27 and young enough to repair my credit and turn things around, I consider bankrupcy just to stop creditors from calling. Is this an option with just over $10k in CC Debt?
Any help and advise you can give would be more than appreciated!
Is there anyway you can get a loan to pay them all off? I don
Is there anyway you can get a loan to pay them all off?
I don't think bankruptcy is a good decision with the amount of debt you have.
Are the creditors who are calling you collection agencies or are they the original creditor? A limited Cease and Desist letter will stop the phone calls, you can demand they only communicate with you in wrinting, I would send only a limited, if you leave them no legal means of contacting you then odds are they'll sue.
HI Jasun. All of the storefronts are legal and since you have wr
HI Jasun. All of the storefronts are legal and since you have written a check to them closing your bank account would probably not be a good idea. The payment plan you are talking about is the EPP I think?? If you go into the storefronts at least one day before payment is due and ask them to invoke the payment plan they will break it down to 4 payments to pay them off. Interest and fees stop. It sounds like that would be the best thing for you to do to get rid of them. As far as bankruptcy I am not sure I would do that at your age, you will probably want to buy a home someday and you dont want that on your credit. Maybe if you can get payment plans on the paydays and stop taking anymore out you can get control of things. Best of luck. Also, I am new so someone else might have better advice for you so keep checking back.
