How to get out of the PayDay Loan cycle?

Hi nas866.

I joined recently, also, but I'll tell you what I've learned so far. First, were these internet loans? If so, they might not be licensed in your state, which would make the loan void. You might owe the principal, but if the interest you paid covers the amount of the principal, you may owe nothing. If they are licensed in your state, though, you'd have to go according to those laws. To see if they're licensed in your state, go up to the google search on the right of this page and type in Pollyandsay's. Pick "Pollyandsay's home page." To the left, you'll find her blog. Enter that. Scroll down. To your right, find Corporations search by state. Find your state. Pick "business name." Enter the payday loan company's name exactly as it appears (paying attention to capitalization, spaces, etc.). Hit submit. If "no row returned" comes up, they're not licensed in your state. If their company does come up, then they are licensed but need to go by the laws of your state. To find out the laws of your state, I searched Yahoo for Payday Loan Consumer Information. On your left, go to state information. Find in the text where it has underlined "National consumer law center's summary of state laws." Scroll down to your state. Also Pollyandsay's blog has a template for different letters you can use to send to these companies revoking your authorization for debits from your account. This should at least point you in the right direction. Best of luck to you.

Hi dbaker, I have read a few of your posts. You sound helpful and have become a part of this group also in short time. I welcome you, here. :)

Nas, follow what Dbaker said. Money from payday loans never helps. It just increases the overall problems and disturbs the financial system. We think it is helping at the time when we have the cash in hand, but the interests and fees is often forgotten when such loans are taken. We only realize that multiplying when defaulted. Never take a payday loan in the future.

Which payday loan companies are you dealing with?

I am dealing with Cash Adavance they are a store front PDL. I borrowed $600 and was supposed to bring $690 ($90 is intrest)today (but did not have the funds), and then if I had to re-write I could get $600 back, that is $180 a month that I am spending that I do not have. I called them today and hopefully they will work with me on getting this taken care of. I am greatful I found this site, I am so glad that I am not the only one that has gotten caught in the PDL trap. I just hope others find this sight and do not get into PDL's. I have made many money mistakes in the last 13 yrs when I started going thru my divorce and I really want to get things straight so I can get out of debt. I just turned 40 not long ago and I want to work to live not live to work.....

Have you talked with any consolidation company for their assistance? You can also try and talk with Cash Advance if they are able to give you a lower payment plan. Since you are supposed to pay them today, I will suggest calling them now and explain about your situation. If they can do something for you, get it done today. They might sound hard if they don't get money from you by the end of the day.

In the pdl trap as well,I just checked the corporations by state and found that most returned no results, and are therefore, not licensed in my state. If I'm understanding correctly, if the interest I've paid on these loans is more than the principal then I may owe nothing. How do I find that out?

If the interest paid to date is more than the principal on the loan, then you have overpaid. Many of us have had success in getting our internet pdls marked paid in full by using the template letter found on pollyandsays blog. Some people have even been successful in getting refunds in the amount overpaid.

Thanks, Christina, for the welcome. It's good to be here.

Has anyone heard of Richard Brenna and Associates?