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No question just my story..

No question just my story..

Submitted by on Wed, 04/07/2010 - 09:12
Posts: 202330

I was in way over my head on PDL's (these were all actually installment loans the new PDL in IL) I owed over $7500.00 in PDLS. I was making well over $3000.00 in payments monthly and was in way over my head. I could not do it anymore my gas and electric bills were at the disconnection point and the only bill I was managing to pay on time was my mortgage well that was because I needed a place to live. I ended up defaulting. I could no longer keep up the payments. But hopefully some of the tips I can provide are helpful because I paid all of the installment loans back in full and saved myself thousand in interests fees.

The first thing I did was go to my bank and ask them how to handle the situation. They did not close my account they put it on a funds hold. Never close your bank account with PDL's or installements loans that are oustanding. Freeze your account. That way nothing can go in and nothing can go out. If a lender tries to access a closed account it will reopen the account and you will be charged overdraft fees every time somethinf tries to clear.

The second thing I did was call every single one of my debtors and let them know my situation. Some were nice some were not. I then waited for the poop to hit the fan but amazingly it never did. I dealt with my debt head on and most if not all of them were willing to work with me. I used the same approach with all of them which was clear and not far from the truth.

I let them all know clearly and concisely that I was willing to make a payment arrangment on what was owed (minus a lot of interest and fees) or that my plan was to file bankruptcy in the next 60 days and they would be included. I ended up settling with all of companies for pennies on the dollar of what I actually would have paid had I been able to make all scheduled payments.

The third thing is take their calls. If you ignore them the harrassment does begin. But by dealing with them straight forward and head on I received no harassment whatsoever.

This was a scary feat for me as I had read alot of the forums here and was thinking for sure they were going to start calling my employer and family memmbers but it never happened. This also ruined my chances of ever getting another quick solve loan ever again because they all report to some kind of tracking system and I am now on a ban list of some sort. But you know that's ok with me. What it means that I now have to be diligent and make sure that I have enough to cover my essentials and can no longer borrow money for things I want rather than need. This cycle startedbecause I borrowed to cover an essential but escalated because I borrowed for a want not a need.

Anyways I hope this helps someone. Delaing with predatory lenders can be scary but it can done.