Share post
member profile picture
Posts: 3
Credits: 0
[Donate]

Hi everyone.

Here is my situation. I have gotten myself into payday loan hell by being a complete ignoramus and by having terrible luck. Not a good combo, right? Anyway, it has gotten to the point where I can't make ends meet and I can't keep taking out the payday loans.

My situation is this:
I earn 2100 a month net.

My fixed bills:
255 car loan
305 discover settlement
178 1st financial bank settlement
80 cell phone
65 car insurance

I do not pay rent. I can eat pretty cheaply. Obviously I have to buy gas for the car. Other than that, these payday loans are kicking me oh so forcefully in the nards that I don't know what to do.

My payday loans:
I have 3 store front payday loans:
Checksmart 850+153 in interest
Check City 700+111 in interest
Money 4 U 250+50 in interest

and 2 internet loans:
CashDirectExpress 500+132.50 in interest
CashNetUSA 500+125 in interest

What should I do? Should I try to consolidate my payday loans? Should I close my bank account? Should I try to do extended payment plans? Are these companies willing to work with people? Should I let the checks bounce? If so will they be more willing to work with me? I'm just losing a lot of sleep over this stuff.

Any advice or suggestions help. Thanks.




I have to look up a couple things. Be right back with an answer for you.

Sub: #1 posted on Wed, 08/17/2011 - 10:05

OhioGal1 OhioGal1
Moderators Cum Industry Expert
(Posts: 5253 | Credits: )

OK, first things first, CashDirectExpress is not licensed to lend in the U.S. Anything you've already paid them in "fees/interest," you can subtract from the amount they loaned you. If you've already paid back that $500, you owe them nothing else.

The others are legal in your state. I have a couple of suggestions for you.

First, you'll have to close your bank account to be safe from CDE. You can email them the illegal lender letter including language to revoke ACH authoriztion and any wage assignment. Give a copy of that email to your bank when you close the account and to your HR department at work. I recommend going to the bank to close the account immediately after sending the email.

Second, you need to contact each of your other lenders, who are legal/licensed and ask for an extended payment plan. If they offer one, they should take your current balance and break it into 4 equal payments due over your next 4 pay dates.

If they don't offer one, try to work out a payoff or settlement you can afford.

If the storefronts give you trouble, contact their corporate offices.

If you cannot work out payoff/settlement arrangements that work for you, you'll have to tell them that you will have to default on the account and work out a payment plan with their collections department.

From experience, I can tell you that CashNetUSA and CheckSmart are usually pretty easy to work with.

Sub: #2 posted on Wed, 08/17/2011 - 11:09

OhioGal1 OhioGal1
Moderators Cum Industry Expert
(Posts: 5253 | Credits: )

So what do I do with the 500 I owe CashDirectExpress? I don't just not pay them back at all, do I? That would feel very dishonest as they did give me 500 bones.

Advice on how to handle them?

As far as the Extended Payback plans, I know that Checksmart and Check City will let me do that, but it is really expensive to cut sums that huge into fourths and they won't budge and let me do 8 payments or anything like that.

Any advice on getting them to work with me?

Thanks so much for your help!.

Sub: #3 posted on Wed, 08/17/2011 - 11:28

sstbmadsen sstbmadsen

(Posts: 3 | Credits: )

Are the illegal tender letter with language to revoke ACH authorization and any wage assignment form letters I can find somewhere?

Sub: #4 posted on Wed, 08/17/2011 - 11:32

sstbmadsen sstbmadsen

(Posts: 3 | Credits: )

You are only required to repay the principal amount borrowed from the illegal lender. If you've not paid anything toward the $500 yet, then you need to set up a payment arrangement with them. I suggest paying via a pre-paid debit card.

You can find lots of information, including sample illegal lender letters, in this thread.

If your lenders won't work with you, storefront or the corporate office level, tell them you will have to default on the loan and work out a payoff with collections.

Sub: #5 posted on Wed, 08/17/2011 - 11:55

OhioGal1 OhioGal1
Moderators Cum Industry Expert
(Posts: 5253 | Credits: )


Page loaded in 0.208 seconds.