This is the first time writing online. I have shamed and disappointed myself and am drowning in Payday Loan debt. I have 4 loans at the moment. I have been taking out loans, paying them off, refinancing, etc. for over a year. All started when my mortgage more than doubled from $612 to $1475/mth. The mortgage company drafted said $1475 in December of 2010. From that point on, I've been using payday loans to live off of - but only just barely. I now understand that terminology - Robbing Peter to pay Paul and Mary will get hers eventually. Almost all of my monthly check (I only get paid once a month) goes to paying off and refinancing these loans. I'm so sick of it. I am now behind on my car and mortgage payment, plus I'm having to ask for extensions to pay the utilities, etc. I hardly have enough money for groceries or gas. I've been taking off work so I don't have to drive and save gas until I can find extra cash. I can't sleep at night, i'm super stressed out and I feel like I'm going to have a heart attack.
So, I decided to contact a payday loan debt consolidation company in Florida - paydayloandebtassistance.com (I live in Dallas, TX) and they were happy to help me. They offered me 15 months to pay all settled accounts - but they couldn't guarantee the PDL companies would accept their offers. Payments would have been $337 (their fees included). I would have been paying them $1700 in fees. This was for only 3 of the companies. They did not work with The Cash Store. After reading through the agreement, more questions came to mind. I dug around on the internet and found lots of negative information on them about taking money but not paying off the loan companies so I panicked. My gut was telling me not do it and I didn't.
As I was preparing, at the debt consolidation company's advice, I opened a new bank account and am about to close my current bank account - which all loans are tied to... I am now trying to figure out what to do next. Any advice on what I should do?
Here is a list of loans I have open with 4 companies - all of which I am in good standing:
* Cashnetusa.com (online)
$1500 borrowed + $353.11 fees & interest - $1853.11; current on loan
$770 borrowed + $288.75 fees & interest - $1058.75; current on loan
*ACE Cash Express (online)
$1100 borrowed + $283.39 fees & interest - $1383.39 current on loan
*The Cash Store (store front)
$800 originally borrowed - been paying biweekly since August 2011 - balance currently owed is $475.95; I am current on this and next payment is on 5/21/12 and I usually refinance at that point because I don't usually have the money to make another full payment.
I'm scared and need help. If anyone can point me in the right direction, I would be grateful!
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