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Advise on getting out of payday advance debt

Date: Fri, 11/04/2005 - 07:33

Submitted by anonymous
on Fri, 11/04/2005 - 07:33

Posts: 202330 Credits: [Donate]

Total Replies: 2


I have several payday loans, I just put a hold on my checking account because it was killing me to pay the fee. I want to make some kind of arrangement with each company or consolidated them into one payment but not sure how to do that


TC

I would recommend changing your account number. If you have several payday loans out, soon as you "unfreeze" your account, you'll get hit. Also, if they account is still open, they try to run it through...and an error back as 'funds not available', you'll also get charged their NSF fee.

Talk with each of the payday loan companies and inquire about the interest rate. Most are $25 per every $100, every payday (1 week/2 weeks). This is what you'll be charged.

You should try to pay off at least 2 every month. These loans will haunt you the longer you keep the loan out.

Don't forget about the loan agreement as well. Read over each one. You could have signed a wage assignment, which means you could lose a paycheck. The loan companies are allowed to get their money back this way. However not required, you can revoke the wage assignment. Forceable ones were done away with in the mid 80's.

As far as consolidating them, most companies will not accept payday loans. As these were meant for short term use.

Hope this info helps a little.

Regards-
Mike


lrhall41

Submitted by Teleport on Fri, 11/04/2005 - 08:55

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Before you close your checking account, I suggest that you should have a talk with your lenders. Draft a letter explaining your financial situation and convince them that you are willing to pay the said debt. As you are interested in making an arrangement with the payment plan, advance some money with your negotiation letter. Mention that you will be following the said plan each month if your check is cashed. I hope they will be willing to work with you after knowing about your concern.


lrhall41

Submitted by ben on Fri, 11/04/2005 - 09:31

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