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How Do I Get Out of the Payday Loan Trap? – Gail

Gail

“Dear Steve,

I have 5 payday loans.

How do i get out of this trap

Gail”

Don’t miss our free Get Out of Debt – “How To” Guide Series on a number of topics, for loads of practical advice, tips, and help to beat back debt. – Click Here

The Answer

 

Dear Gail,

The best way to avoid problems with payday loans is to not take them out in the first place.

While a short-term loan can be used wisely and successfully, the minute you start taking out additional loans before you’ve satisfied the first you are asking for trouble. Trouble just like you are in right now.

Payday loan outfits don’t generally play nice with credit counseling programs so that leaves you with bankruptcy as the only legal way to nuke your payday loan debt outside of paying it off in full.

Big Hug!

How Do I Get Out of the Payday Loan Trap?   Gail
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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • freida

    I had 4 payday loans and used a loan payday loan consolidation company.  They stopped the interest payments and my debt was paid off in 10 months.  I saved about $7,000

  • freida

    I had 4 payday loans and used a loan payday loan consolidation company.  They stopped the interest payments and my debt was paid off in 10 months.  I saved about $7,000

  • Susan

    Many people find themselves right where you are, in an endless cycle of payday loans trap and can’t figure out how to get out. What I actually had to do (initially because I had fraud on my account) so I closed my original account and opened up a second account. I absolutely did not give my new banking information to the payday loan folks. I had every intention of paying them however I simply could not keep paying the outrageous interest. It got to where I could only pay the interest and nothing was being applied to the principle balance and I started getting behind on my mortgage and other bills. So, again I closed my banking account, opened the new one and then proceeded to call the lenders one by one. I explained that I had fraud on the account and I actually told them I did not at this time open a new account. I asked if I could set up payment arrangements (which stops the interest on the loans and now you can begin to pay down the principle balance) Many will work with you, some say they won’t but eventually they do. Set up realistic payments that you can afford>>most will allow 4 equal payments to be paid, some a longer payment schedule depending on which lender it is. You must take control and under no circumstance give them your new account information. Instead, get a Walmart money card and use it to set up your payments. It can be done!

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