How to Get Out of Debt With the Get Out of Debt Guy » payday lenders

Payday Lenders Prepare for Big Payday Loan Rush in December

Steve Rhode — Tue, 30 Nov 2010 23:13:09 +0000

Payday lenders know what happens each December, they get busy.

While there has been much written about the dangers of payday loans, there seems almost nothing that will break the trend of accelerating payday loan interest in December.

Since 2004, December has proven to be a very popular month for payday loans, right behind late Spring.

What is fascinating is the repeatable pattern that exists year-after-year for payday loans. As you can see by the above chart, immediately following the December holidays the interest in payday loans seemingly falls off a cliff. From a low interest point in February, requests for information about payday loans will continue to increase until the Spring when demand will slump over the Summer.

Since 2004 the yearly interest in payday loans continues to increase.

@GetOutOfDebtGuy

Payday Lenders Fearing Proposed Regulation

Steve Rhode — Tue, 11 May 2010 15:23:51 +0000

From How to Get Out of Debt

While debt settlement companies are furious about pending legislation and feel they have been singled out, the payday lending industry is facing legislation with the Payday Lending Limitation Act of 2010 and that’s not making them happy.

Here is a press release from on payday lender.

@GetOutOfDebtGuy

LOS ANGELES, May 11 /PRNewswire/ — In the wake of the subprime mortgage collapse, and amidst the proposed consumer financial protection bill, it seems that small businesses are finding it tougher and tougher to get access to small business credit. This seems to be one of many unfortunate “side-effects” of both our current economic crisis, and the proposed regulations that small businesses and others may soon be facing. And many smaller lenders, including payday lender Pay1Day.com, are already planning and preparing for these possible changes in federal regulation that may soon cast new restrictions on how they currently do business.

Many small businesses will not be able to cope with changes to their financing options or afford the legal council to draft changes to their contracts, leading many to simply abandon their current financing options. Unfortunately, these financing options many times are a driving force in their business, providing simple finance options for working-class Americans who otherwise would not be able afford the purchase. Without the ability to provide financing options to their customers, many businesses may not be able to survive losing sales due to lack of financing.

For example, dentists often offer “in-house” financing options, meaning that you could get braces for your children and apply for finance options right in the dentist’s waiting room. This new legislation stands to oversee this type of finance, in which case many dentists will simply abandon offering any finance options, leaving no options for their patients but to take online payday loans for their dentist and other doctors bills. In spite of the fact that finance options help drive their business by offering credit options to those who cannot simply pay their total balance “up-front,” they simply are not in the business of finance, therefore are not prepared to cope with new financial regulations.

One could argue that payday and short term cash lenders could benefit from this arrangement, but at their payday loan blog, folks at Pay1Day.com argue that they are also falling within the small business category and the financial regulation is making it more costly for them to lend short term cash, hence the cost of payday advance loans are also increasing.

I Have 4 Payday Loans, Medical Bills, And It Is Too Much. – Laura

Steve Rhode — Thu, 08 Apr 2010 19:32:02 +0000

From How to Get Out of Debt

“Dear Steve,

4 pdl’s can’t pay them keep borrowing from them each month. Tons of medical bills school loan car note food everything is toooooo much. Please help! How can I get out of debt?

Laura”

The Answer:

Dear Laura,

First, stop taking out more payday loans. A payday loan can be a good tool to use in a limited set of circumstances. The optimum time to use one, if you have no other option, is when you have a short gap but need the money right now for something necessary and you can repay the money on your next pay day.

For example, the car needs repairs and you need $300 to pay for it but don’t have credit or cash to pay for it right now. A payday loan can help to bridge that gap but you have to pay it off when you next get paid.

And if you are taking out more and more and rolling them over, you are in big trouble with few options.

With what you shared I would assume that you are unable to repay the payday loans, medical bills and you are in trouble with the car note.

A credit counseling or debt management program is not going to be of much help in your case. Payday lenders don’t play nice with these groups.

You can either stay the course you are on now or consider bankruptcy. Go and speak to a local bankruptcy attorney. If you want a free bankruptcy consultation, click the link.

I’m afraid that outside of you finding a large sum of money to pay off the rolling payday loans, you are toast and bankruptcy is the most realistic escape from your cycle of debt.

And Laura, please stay away from the payday loans in the future unless you can pay it off on the next pay day.

Big Hug!

@GetOutOfDebtGuy

I’m Drowning in Online and Local Payday Loans. I was Referred to Langhorne Debt Solutions. – Lacy

Steve Rhode — Tue, 28 Apr 2009 18:37:55 +0000

From How to Get Out of Debt

I apologize in advance for the short response. I am currently away on vacation with limited internet but wanted to give you an answer as soon as possible. Steve

Lacy

“Dear Steve,

Currently have $2100 in payday loans, 4 online and one in town local. Cannot get ahead, and in fact with losing some of my income a couple of weeks ago, we are going down fast. I tried talking to my bank, tried talking to the lenders, they referred me to a place called langhorne debt solutions, they told me about the program but said to have my bank put a freeze on all ach debits to stop the fee’s coming in and then let them work with the lenders to reduce my payments and get this paid off. But my bank says they don’t do that. Don’t know what to do, need help!!!!

What do you recommend for getting out of payday loans, I am not in defalut with these loans but they are taking all our money and it is getting really serious now.

Lacy”

The Answer:

Dear Lacy

I took a look at the website for Langhorne Debt Solutions and it appears they are engaged in monthly payment debt settlements to resolve payday loans.

I think your financial ship is sinking; abandon ship. I’m afraid that at this point the only logical solution is going to be bankruptcy to end the old debts and give you at leat a chance of living within your current income. Any other debt solution would be foolish to try at this point since there would be no cessation in collection activity and you still risk facing criminal charges for writing bad checks for the payday loans or being sued for the bad payday lenders.

Big Hug!

@GetOutOfDebtGuy

Payday Loans and Cash Advances

Steve Rhode — Sun, 19 Oct 2008 13:55:59 +0000

From How to Get Out of Debt

Now that banks have stopped their rampant lending to consumers what should we expect next? Well let’s not be surprised if we see an increase in payday loan or title loan activity. A payday loan is an unsecured, short-term cash advance until your payday.

Payday loans are typically hyped with payday lenders saying things like:

Personal Cash Advance is the fastest way to obtain secure, online cash advance and payday loans. Signing up and qualifying for a payday loan is quick and easy, and in many cases there are no documents to fax depending on the lender that accepts your loan data. Once a lender approves you for a cash advance, they’ll electronically deposit the payday loan amount directly into your checking or savings account. Our service providers offer flexible payment options and a discreet service that gets you the cash you need right now. It’s that easy, so why wait to get that cash advance?

So why will payday loan activity increase? Well just because banks stop or slow down lending it does not mean that the obligations of consumers stops. And in the absence of first level lenders, consumers in need will turn to Back Street lenders like payday loan shops, pawnshops, and check cashing joints.

These financial service companies are typically maligned by Main Street lenders but no matter what you think a payday loan outfit does serve a purpose. Granted, that purpose might be to be there to lend when others won’t, that does not mean that the need does not exist for the consumer to borrow funds for a short period of time.

One thing that you’ll never see in the payday loan world are collateralized debt obligations (CDO), special investment vehicles (SIV) or a subprime meltdown. It could easily be argued in light of recent banking and investment house failures that payday lenders behave in a more prudent fashion.

Some states and localities are trying to shut down payday loan providers. If they are successful the only thing that will happen is that the subprime segment of the population that typically uses payday loan shops will not have them to turn to when their banks have forsaken them.

Payday loan providers would not exist unless there was a need, a desire and a customer base that was not otherwise served. Granted that customer base is closer to the poverty line than Main Street lenders would touch but just because the clientele is less credit proper does not eliminate their need for quick access to cash.

Can payday loans be abused, yes. Can mortgages be abused, yes. Can a payday loan be expensive, yes. Can a credit card charge high fees and interest, you bet.

Eliminating the payday loan does not eliminate the underlying reasons why a segment of the population uses payday loans. In fact, the elimination of payday lenders may simply lead that same group of consumers to use criminally based lenders, and I’m not talking Bear Stearns.

How to Get Out of Debt With the Get Out of Debt Guy » payday lenders

Payday Lenders Prepare for Big Payday Loan Rush in December

Other Related Articles to Read

Payday Lenders Fearing Proposed Regulation

Other Related Articles to Read

I Have 4 Payday Loans, Medical Bills, And It Is Too Much. – Laura

The Answer:

Other Related Articles to Read

I’m Drowning in Online and Local Payday Loans. I was Referred to Langhorne Debt Solutions. – Lacy

The Answer:

Other Related Articles to Read

Payday Loans and Cash Advances

Other Related Articles to Read