Payday Loan Repayment Advice Needed

Date: Thu, 01/26/2006 - 12:19

Submitted by anonymous
on Thu, 01/26/2006 - 12:19

Posts: 202330 Credits: [Donate]

Total Replies: 2

I was referred by DCC to Delry Debt Consoidation Services yesterday. My debt has to do with the mountain of payday loans I have accrued trying to get them taked care of, now I'm in a mess and have gotten nothing accomplished. The customer rep. said they could not help me with this because no one handles debt consoidation with payday loans. He advised me though, to close my checking account and pay each one off individually instead of all of them trying to draw fees out of my account every 2 weeks until I can't even afford to get gas or food. So he said to do this and I can get at least one paid off a month instead of continually running around in circles and going broke and having overdraft fees from my bank. My question is that if I do this, should I tell them that this is what I'm going to do or should I just do it? One of them did not get paid this last time because they tried to draft my account before my direct deposit went in and I got charged NSF and they immediately sent collections after me but I don't want to get sued either? So do I just pay them off each month as I can with a money order or tell them that this is what I am having to do?

Thanks Sunny

Sunny, your lenders should be

Sunny, your lenders should be aware of the steps you are taking from your side. For this purpose, you need to draft a proposal and mention the amount that you can pay each month. To make your proposal more effective, you can also advance them with some money. Basically, you should have a written record of all the steps taken towards repayment of this loan. It might be required if there is a mix up between you and the lender at the later stage. Try with this sample letter, I found in this forum.

YOUR NAME
YOUR ADDRESS
CITY, STATE, ZIP CODE

Date:

CREDITOR NAME
ADDRESS
CITY, STATE, ZIP CODE

RE: Acct.#

Creditor:

I recently obtained a copy of my credit report and noticed that your company has reported me as having the above listed account as: (delinquent, sent to collections, etc.). I wish to bring this account to a resolution that will be fair and beneficial for both of us. Therefore, I propose to pay you X monthly payments of $, or forward a check to you in the amount of $ as payment in full, provided that you are willing to send me a letter stating you will report this to any and all credit reporting agencies as: 'PAID AS AGREED' or notify me in writing that you agree to delete this item from any and all credit reporting agencies.

I WILL NOT agree to accept a 'PAID P & L' or 'CHARGE OFF' for an additional amount of time on my credit report. It is my position that I have suffered enough as a result of this problem.

Upon receipt of your letter I will send you a cashier's check or money order in the amount of $.

Sincerely,

Signature Date signed

Your name Date printed

You can tailor this sample letter according to your requirements and send it through certified mail with return receipt requested. Keep copies in a file so that you have proof of the facts.

Most of the lenders agree to accept such proposals because it clearly shows your concern to pay the debt. Don't miss your payments once the proposal is finalized. It might happen that some benefits will be offered to you looking at the course of your payments. These benefits comprise reduction in the interest rates and wiping off the late payment fees. If you miss any of the payments, these benefits won't be extended to you ever. Not to forget, since you failed to keep the commitment, the lender might take actions that will go against you.

Try to keep things simpler and call them first. Since you will place the call first, they will start understanding things from your point of view.

If you face any problems in between, just post your comments here. The community will jump in to help you further. :D

lrhall41

Submitted by david on Thu, 01/26/2006 - 13:34

( Posts: 1229 | Credits: )

Hi Sunny, These are very good suggestions given by David. Th

Hi Sunny,

These are very good suggestions given by David. There are a lot of us here going through the same situation. Ask any questions concern payday lenders or search the forums, you will find answers here. Keep informed with the lenders, this will be an advantage to you in the long run. Don't let them threaten you though, don't be afraid to stand up for yourself. They will accept the payments more than likely, especially the online lenders. Be aware of your rights and you will do just fine. If you have any questions, feel free to post them on the forum. You will get a lot of great advice here.

lrhall41

Submitted by Cow & Chicken on Fri, 01/27/2006 - 05:10

( Posts: 3571 | Credits: )