Pay Day Loans Are Bad News

Maria, there are many threads in this forum discussing about the payday loan problems. Many here are trying to take control over the payday loans by paying them as per the state laws. Know your legal rights while working out arrangements with your lenders. The interest and fees must be within the permissible rates in your state.

Tell us something about your situation so that we can offer you some guidance. We all are coming out of this mess slowly and you will feel relaxed walking along with us.

I started using payday loans as a way to get ahead. I had been out of work for 4 years and I just got a job in November. On pay periods my checks were all different due to our paycycles. My child care bill went up extremely and I could no longer depend on the state for food stamps, so my groceries bill went up. I have 3 children to support and rent to pay. I started off with just one loan and now I have 8. It sucks to scrip and save here and there. I am paying 567.50 in fees every pay. I enrolled in a debt consolidation program that accepts payday loans. I am still in the beginning stages but it is worth it. I contacted all of the lenders to let them know what is going on. One lender told me that his company doesn't deal with 3rd parties. After this next pay perion. I am going to put a stop payment on all of the ach debits coming to my checking account and close the account.

maria,
payday loans are bad news, but there is a light at the end of the tunnel. Like justme said, please explain a little about yourself and your situation, as well as the payday loan companies you are dealing with, and people will be glad to offer you advice.
Welcome to the forums!

Yes, payday loans are bad news. I suppose there are some people who are able to take one out and then pay it back immediately. But, I don't think the pdls really have those people in mind for regular customers. It is the people like us that live from payday to payday and maybe don't have backup support that succumb to the pdl cycle.

I too have just joined this site and I am having payday trouble, I have 4 online payday loans, two of which I have made arrangements with and still cannot pay them. I just got divorced, have 3 kids and my ex didn't pay child support for a year. I also have two local personal or small signature loans. The funny thing about it is, if I didn't have all those payments, I would be doing just fine with my paycheck and the child support, but now I can barely py my rent, all my bills are late and I am ready to just give up.

Do not give up! You are just going through a rough patch. You have made a good decision to join this site and take advantage of what is offered. Have you gotten to speak to one of the debt counselors yet? They are your best bet as far as advising you on which way to go regarding your debts. Keep us posted on your progress.

I just got on, do I need to call the number? I put in my info about a month ago, but I didn't take advantage of the person who contacted me, I guess I thought I could get out of this myself, but I know that I can't.

I am sorry to hear about your situation with payday loans. Remember, you need to pay your bills that are in priority. Save some money from your daily expenses so that it can be sent towards the payday loans. Know your state laws regarding the permissible interest rates and fees. Some lenders charge excessively and pay only towards the interests and fees. The principal amount never gets paid. Learn about the state laws while making arrangements with your lenders. Here are some good links to begin with.

http://legis.wisconsin.gov/lrb/pubs/wb/00wb7.pdf

http://hffo.cuna.org/download/1168.pdf?&sub_id=14490

Justme,

Thanks for those very helpful links.

Kathy

A lot of us came here looking for help regarding the payday loan cycle. This forum saved my butt and in the process I have made some good friends that I can vent to regarding getting out of the cycle. It sounds like you are taking the right first steps for getting out of the pdl cycle. Yes, they are bad news but each day it does get better. It's a relief not having to pay just finance charges or roll over fees all of the time once you enter into debt consolidation. Keep us posted on your progress :-)