My story and...Help I hope?
Date: Tue, 01/02/2007 - 23:08
I am a 21 year old female who has a decent job, but who also fell into the payday loan trap. What started out with one payday loan has now become 6. It has gotten to the point where just about all of each paycheck goes to the loan fees. It makes me sick to know that I am giving them so much money, just in fees alone. This last payday was the last straw. I was only able to make two payments to two of the companies, and the rest I can't. Each loan I have taken out has been for 300-400 dollars, although one of them is for $700. I couldn't pay the rest of them because we owe so much money on our electric bill they are threatening to turn off our electricity. We barely are able to make rent each month and often bounce checks trying to do so, which is making our rental history (I live with a roommate btw) look awful. Today all of my loans were due and I wasn't able to pay them. I am expecting tons of phone calls tomorrow both on my cell and at work and it stresses me out so much that I feel sick. I don't want them calling my family and friends or anyone at my work looking for me.
Unfortunately, I don't have a perfect credit history as you may have guessed. I am currently living in Portland, OR and I moved up here about a year and a half ago. When I first moved I had a poor paying job and I fell behind on a lot of my credit card bills. I had to go into credit counseling. I stuck with it for a few months but ended up dropping out after my purse (and my id) were stolen. I attempted to to have my payment deducted each month from the new checking account I had just opened but the credit counseler was very little help. She told me I had to be the one to fax the info over to the new bank even though she had done it for me in the past. I tried several times but the fax never went through so I just stopped. But my credit cards still allowed me to make my "reduced payments" so everything worked out okay, at least for the time being. Then the payday loan stuff happened when I had an unexpected expense. Now I find myself unable to make the credit card payments again. I also have student loan payments to make. They are small payments ($50/mo for a $4000 loan) and another one that I will start having to pay back in Feb. The credit cards are still over limit (both at about $3800, and two at about $400). I also have a hospital bill from when I didn't have insurance over a year ago that is at about $700).
I am not sure what the best option is. I am seriously considering bankruptcy. I know that I am very young and I feel really awful about it. But I just want to make this stress go away. I don't know what to do! I realize that I have made a lot of mistakes, ones that I will NEVER make again. I got credit cards when I was 18 and was fine with making payments until I moved out on my own. That won't be happening again and I never want to see another payday loan place in my life! Does anyone have any advice though?
Welcome to the forum. You're not alone. Most everyone on here h
Welcome to the forum. You're not alone. Most everyone on here has been in some type of debt. For the PDLs, you can look up your state laws and see what is allowed: www.paydayloaninfo.org.
Since you have registered, a debt counselor in your area will be contacting you to go over various options for your credit card debts and hospital bills with you.
The best of luck to you. Let us know how you're doing.
Hi delphenia Nice that you found us. You will find so many h
Hi delphenia
Nice that you found us. You will find so many here dealing with the same pdl issues. In fact, a lot of us have had a worse situation because of pdls. But now, thank god, they are in a better position.
You will have to stand strong when you are dealing with these pdl issues. While you are waiting for the counselor to call you, just go through your bank statements and find out the total payments you have done so far. Also, review the laws in your state. You will come to know the legal charges allowed in your state. You will also need to check if the loan companies you are dealing with are licensed in your state. Follow the link dbaker6 posted above. You will come to know about the laws and your legal rights. All pdls have to be licensed in your state in order to charges the interests and fees. If they are doing business without a license and adding excessive interests and fees on your account, you can legally take actions against them with the help of your DA.
Have confidence and go through your accounts. If there is anything you want to ask, just post it here. The counselor will call your pdls and do the negotiations. The payment plans will be fixed according to your financial situation. Slowly, when you will see your accounts getting paid off, you will feel better.
I live near Portland, too. I went through almost the exact same
I live near Portland, too. I went through almost the exact same thing you are, and there is light at the end. First off, we need to know if your PDL's are storefront or internet? If you could post the names of the companies, amount borrowed, and amount paid we can give you some advice on how to proceed. Unfortunatly Oregon doesn't have an interest rate cap, but the PDL's must be licensed to lend legally. Most of the storefronts are licensed, but a lot of the internet ones aren't.
Once you defualt the calls and harrassment are going to get pretty bad. Read through the threads on the debt consolidation and settlement board and you can see others experiences with pdl companies. The reason they harrass you is because for most of them that is all they can do to collect on the debt.
There is a ton of information on these boards, and odds are good that others have dealt with the companies you are dealing with and can give you good advice on how to proceed.
Welcome to the Community :D Here is some info on debt consolida
Welcome to the Community :D Here is some info on debt consolidation at http://www.debtconsolidationcare.com/benefits.html You can look at this and perhaps discuss this with the credit counselor. I would hold off on bankruptcy, and see what other options you have first. If your pay day loans are internet, you need only pay back the principal. Keep asking questions and posting, we will walk you through this. Godd Luck..KAren
