Payday loan debt settlement - Reduce your pdls and get rid of stress

In keeping with the topic,someone posted before that they had worked out smaller payment plans with some of their payday loans.Can anyone list some of the payday loan services that will work with you from your own experience with them.They even went as far as to say that one company wrote off the loan since they had payed so much in interest over the months.Has anyone tryed this?

OK...so then as I'm understanding this

basically consolidate it directly with the lendor. I understand more now. I personally have not tried this, but have heard about someone who, because of the intested they've paid, had it written off.


(edited 4 hours later...twokidtwocat--just read your comment twokidtwocat...hopeufully someone will let us know if this haas happened to them.)

-Mike

Creditors will be willing to work only if it is not sold to the outside collection agency. In my honest opinion, even if you are not able to pay the total amount, you should keep paying something towards the accounts. Doing this, the account won't get charged off and thus it won't be sold to any external agency.

Regards
Roxette

Roxette-

I totally agree. But when most payday loan places won't give you their address and say only payments through western union are accepted it becomes hard for people.

But payinng something...even $25 a week will keep the account from being sold. But even on the off chance it is sold...you need to have everything you've paid. Western Union confirmation numbers...etc.

-Mike

Right Mike, you are absolutely correct with your words.

When most payday loan companies won't give their address and state that all payments should be made through Western Union, I should be suspicious at that moment. I will really like to research more on that company. Comparatively, there are many other companies in the market who give the consumers the options to make payments at their ease.

Mike, let's see what others have to say on this. By the way, how are you doing today? :D

payday loan consolidation is, undoubtedly, a very controversial topic. The conventional way of consolidating unsecured debts does not apply to them. The process that these payday companies follow is buggy from the beginning. They usually approve the cash without checking the borrowers' financial standing.

What I feel, the prearranged line of credit, like depositing PDCs, makes these payday loans somehow different from unsecured debts and that is the reason debt consolidation companies are not willing at all to work with them.

Those who are already trapped by these paydays should try to pay it off even by maintaining a really hard budget or keep it current as Roxette has mentioned, until some agency shows the bravery to consolidate payday loans.

Roxette

I'm doing great...thanks. How are you?

[quote=bryan]The process that these payday companies follow is buggy from the beginning.[/quote]

So what happens when the payloan companies are accepting your payments, but at the same time charing you the payday loan renewal fee. The payday loan company that I dealt with didn't have renewal fees. They just charged you the $58 ($29x2) NSF fee. They'll do it first time, then again one more time before turning it over to collections.

What are some other problems or situations people have had to deal with?

-Mike

Hey Mike, I am doing well and enjoying the forums... :D

I have never been so much addicted to this forum as I have been in the recent times. Thanks to you and the community.

I am waiting to hear from Bryan. He wants to say something, I guess.

Definitely I want to say something Roxette. I have never dealt with payday loans personally. Whatever experience I have gathered from my surroundings makes me feel that the credit approval process should never be as easy as it is in case of payday loans.

The lenders do not check borrower's credit report, just disburse the amount. It is well understood that unless one is badly in need, will not go for a payday loan. Then what is the guarantee that the borrower will return the money? And what is the basis to approve the loan?

Bryan

[quote=Bryan]The lenders do not check borrower's credit report, just disburse the amount[/quote]

I don't think a borrowers credit should have anything to do with their credit score when it comes to payday loans.

Every now an then someone will need some. Only because a checking account is needed and job verification is also required prior to getting the loan. The only problem is when they take their money back. Usually being super early in the morning because they are going by their countries time.

Most payday loans only want to make sure there is a valid checking account available. They don't care the name or the circumstances. If someone says they have a job...then they'll say it's on them come time to take their money back.

-Mike

Byran

I think the payday loan companies were made specifially for people who had credit problems. I peronally could not qualify for a $1000 loan from y credit union. That's usually the lowest loan the give.

So with it being a payday loan...no credit needs to be checked. Just validation of employment and a checking account.

Do you think more should be verified. To see if they are delquent on any current accounts. I know that some payday loans will check to see if they have any other payday loans out.

if this is the case, how do some have more than 7 payday loans out.

I hope we're still staying on topic.... somewhat. But this is a good topic.


-Mike

[quote=Mike]I think the payday loan companies were made specifially for people who had credit problems.[/quote]I do admit it. Those who are not eligible for a loan otherwise get it approved from a payday lender.

But, if their intention is to help those who are in trouble, then why the interest rate is so why? Also, they can extend the loan term, so that people with poor credit really find it favorable.

[quote=Mike]I hope we're still staying on topic.... somewhat. But this is a good topic. [/quote]

Agreed... But we are gradually deviating from the true path. Let's come back on the right track :D

[quote=Bryan]Also, they can extend the loan term[/quote]

I have yet to see a loan extend the loan term except for local loan companies who have an actual written posted dated check.

How can they extend the loan term? Do they add on an extra broker fee of $98 or whatever it is per payday period. Isn't that the same as 2 NSF fees?

-Mike

Since we are not offering payday consolidation or settlement you can mention few company details which do that.

When I calculate the interest rate for a payday loan I go mad, 400% , 600% , even up to 800%. I can't compare a home equity loan at 6% with a payday loan at 750% interest rate :shock: .

Consolidation is a difficult task as you sign an agreement favoring the creditor. I will put the details on why debt consolidation companies are avoiding payday loans.

Vikas

Payday loans are rediculous when it's just a week. The pay back for just borrowing for 7 days is outragous. You are right about that Vikas.

Sometimes I wonder how easy it is to let someone borrow your car for week, or dontate plasma. These terms are just as risky...but sometimes we have no other option.

Are lending companies even allowed to have these type of interest rates. Someoneo menionted that these payday loans say they are out of the country to avoid the US laws, but then the actual brokers are located in the US? Are they actual payday laws. Or what about lending laws? Do we follow US laws when it comes to payday loans....or their laws?


-Mike

When we were dealing with some payday loan where the company was charging $117 for every $100 I came across some laws which talked about fair practices. I will check back the laws for payday loan.

Do you know any company which does payday loan consolidation, I am very eager to talk to their representative that we can offer some help to people in need.

Vikas

I have been stupid and thought payday loans was the only solutiuon. I now have several. Any suggestions on how I can spread out repayment?

Alan

Welcome to the forums. How many payday loans have you taken out. Depending on how often you get paid, you might want to consider paying off one in full each time. This will avoid the interest rate from going up. You might also want to ask each loan company if they'll be charing you interest during this time.

-Mike

Hi Alan

To reduce your problems with the payday loans, it is better to follow a restricted budget each month. This way, you will be able to save some extra money and thus, you will be able to contribute towards your debt account.

At the same time, you can negotiate with your creditors to set up a payment plan for you. You can work with the lenders that put the highest rates of interest and simultaneously work on the loan that is of the lowest amount.

You will only achieve positive results if you handle your finance with proper planning. Calculate all the expenses in a piece of paper and all the sources of income. This way you will be able to act as per the requirements in each month and see your monthly financial position.

Make sure that the larger amount you pay towards your debt account, the earlier you will be able to achieve a debt free life.

If you have any doubts, you can freely let us know. We will be glad to assist you in anyway. :D

Regards
Roxette

i do not have much experience in pay day consolidation,but as far as some help about debt consolidation help is concerned, you can visit:


Link deleted as per forum rules-Mike

nobody is in worse shape than me ! I have ALOT of payday loans, they were soooo easy to get and soooo hard to pay back. My checking acct is always in the negitive because of them. I have stopped payment on them, I am going to try and put them on debt consolidation, before I get a lawsuit against me! I don't know what to do, i started to close my acct, they say they will work with you, but the payments they want are unreal. I can't pay those kind of payments every week or two. Anybody got any suggestions????

Lesa try to deal with them on your own and you may be able to work out payments. Register with this site and someone will contact you about consolidation, I'm not sure if they can deal with pdl's but there are some companies out there that do. We have (almost) all been there and are slowly coming out of the pdl cycle. Stick with us and we can all help you.

If you need a second opinion--Believe what she says Lesa--register and join us here in the forums. I did it just over a month ago and am now in debt consolidation (including those horrible payday loans) and learn new things each day from this wonderful site. Good luck

thanks guys I will do that I already have a consolidation company I am using and I am going to try to put them on it. THe only thing is they won't give you an address. what do u do about that?? thanks again for all your help

one more question, Can you get sued or arrested for not paying on your payday loans well, I mean while your trying to get something worked out, or do they just go to collections and they harrass you until you pay ??

i've sent my payday loans to debt consolidation but i also added all my other bills which was a few medical i already had one agreed to 100 a week til its paid but can't afford no 100 and it was by western union. so thats why went ahead and already sent in a request for a debt consolidation

I currently have 9 payday loans going. What do I do? I can't pay them anymore.

DeAnn---I would suggest first registering as a member on this site and receive the free debt counseling (someone will call you). The counselor can lead you in the right direction according to your own financial situation. You can post questions here also and everyone has lots of experience to share with you.

What will they do if the payday loan don't get payed

I have spoken to a payday loan debt consolidation at Payday Loan Assistance Company. I have approx. 5000 owing at this point (principle and roll over fees). She says I can pay 278 per month for 18 months to them and they settle directly with the payday loan companies. So, over 18 months, I would be paying them about 5000, which leads me to believe the consolidation companies make a lot of money too. Anyway, I would obviously be paying much less in the long run, but my question is can the payday loan companies still come after me once I enter into the consolidation program, or is their settlement with the consolidation company legally binding on them?

Thanks for any help anyone can offer.
LuAnn