Latest Posts
Home > Reader Questions > How Do I Deal With Payday Loans That Are Defaulting? – Lynn

How Do I Deal With Payday Loans That Are Defaulting? – Lynn

I gambled and lost : Waiting for the unemployment insurance that was denied I took out 3 payday loans. stupid, yes. what do I do now? I closed the checking account but the trouble with fees and collections will be devastating. any suggestions?

How do I deal with payday loans that are defaulting?

Lynn

This is your chance to be a hero and help out this person by providing your feedback and answer to the question in the comments section below.

How Do I Deal With Payday Loans That Are Defaulting? - Lynn by

Share This and Spread the Word

About Consumer

Consumer
This is information that was submitted by a third party and not generated by GetOutOfDebt.org or Steve Rhode.
  • Mrsjaimeg

    Lynn, the best thing you can do for yourself is reach out to these guys to work something out.  Ignoring them and trying to dodge will only make things worse.  They want to get paid in some way so if you tell them what you can do they will likely work with you and come up with a reasonable solution.  I know its scary, but there is light at the end of the tunnel if you can get on top of this.  Dont let it go any further. 

  • MrDarcy

    Talk to the loan company and see if they can cut you some slack as the other respondents have suggested already – good luck!

  • RLC

    Lynn:
    I took a similar loan out, and they do have other re-payment options – but you have to call them. When they give you the loan they don’t advise you that the $ they take each month from your account (as repayment) is actually not a repayment of the intitial loan…it’s a fee that ‘renews’ the loan. I took a $200 loan out – and ended up paying them over $1,000 to close it out. I hope you can get it settled; and don’t beat yourself up. :) Good Luck!

  • Tina

    Lynn,
    I agree with Msullivan. I would contact the Payday Loan companies and request a alternative payment plan to what you signed for in the beginning.  I know many of them offer some sort of refinance option. Best of luck to you. I know the interest rates on those loans are obscene.

  • Msullivan

    Lynn,

    There aren’t many options for dealing with payday loans and I would start with the direct approach. Contact the lender(s) and let them know that you do not have the resources to pay off the loans in the traditional way. Ask them to accept monthly payments and to pay off the loans at a fixed rate over a period of time. Accept that the interest rate may well be 20% but it has to be much less than the 399% APR typically charged or you will never be able to pay them off.

    Many states now require payday lenders to offer alternative payoff plans to distressed consumers and even where it is not required, many payday lenders would rather get repaid slowly than to write off the entire loan.

    If any do agree to concessions you must make every payment in full and on time to protect those concessions. If they refuse to make concessions, keep a record of every offer and refusal in the event they pursue a judgment against you. 

    Good Luck!

Get My FREE Get Out of Debt Guy Newsletter

It is the smart thing to do.

I promise to keep your email safe and secure.

Close

I want to keep you posted each weekday with just one email about the latest get out of debt news, scam alerts and information to beat back debt.

You can unsubscribe at any time with just one click.

After you subscribe, check your email to confirm your subscription. If the confirmation email does not appear in your inbox in a few minutes, check your spam folder for it. Sometimes it likes to annoyingly hide there.


  • It will keep you posted on the latest scams.
  • You will be alerted to the latest articles.
  • You will wind up smarter than everyone else dealing with debt.