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

By on July 26, 2012
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

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5 Comments

  1. Mrsjaimeg

    September 20, 2012 at 12:00 am

    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. 

  2. MrDarcy

    August 14, 2012 at 5:21 am

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

  3. RLC

    July 31, 2012 at 8:40 am

    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!

  4. Tina

    July 29, 2012 at 2:39 pm

    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.

  5. Msullivan

    July 27, 2012 at 3:50 pm

    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!

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