I have gotten myself into the terrible payday loan cycle and am extremely ashamed and embarrassed! It all started in September when I needed to get a new clutch put into my car and it spiraled out of control until now. I just got paid on the 15th and my entire check went to the rollover fees for the loans...and some didn't even go through, and now my account is in the whole. This is getting bad and I want to stop it before it gets even worse.
All of the loans are from internet companies:
American Consumer Credit (thecashspot.com): $300
Big Payday Loans: $200
I live in Michigan.
I would really love to get these taken care of asap. I looked into getting a debt consolidation loan (I know about all the warnings here but feel I would be able to make one payment easily/month) but have a terrible credit score and don't qualify.
From everything I've read, I can't include these loans in a debt management program until they have gone into collections.
Do I just let them go into collections and deal with them that way (my credit score can't really get worse, so I'm not worried about that). If so, how long does it take for them to go into collections? I really do not want to have my next paycheck to be eaten up by all the fees again, as I will need to pay rent and bills!
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.