Like the rest of the country when the mortgage industry suffered my husband and I also did since we were both in the industry and were paid commission only. I was lucky enough to find a job but catching up on bills and having only one income resulted for me to go to those money advance places. I am not proud of it but it was nearly impossible paying them off. I found myself renewing it over and over again which only paid the interest. So instead of me getting caught up, I ended up owing more money than when I first started. I have a couple of credit cards that in default and have not paid any of the money advance places. I would like to make payment plans with them but right now we are living pay check to paycheck and hopely I can get caught up by next month.
How do write a letter explaining my situation and for the pay advance places to accept an indefinite date of paying the full amount? and also maybe request for the amount to be reduced.
There is no doubt that it is a really tough time for people that were in the mortgage industry. I have a couple of friends that were mortgage brokers and have now lost their homes to foreclosure.
Just today I read a story about a mortgage broker that was making over $100,000 a year and is now just trying to get a $7 an hour job. Times are tough.
You can make a request for the amount to be reduced but I would not be surprised at all if your request is ignored. Creditors do a horrible job at working out reasonable and fair repayment arrangements and that lack of individual treatment and consideration only leads people toward more drastic actions.
If you are underwater with several check cashing or payday advance places the time has probably passed for you to look at a softer solution like credit counseling. I’m sorry to be the one to break it to you but unless you are able to find jobs now and resume your income it is most likely that bankruptcy is the best solution for you. Click here for bankruptcy information.
Credit counseling really does not do a good job of working out repayment arrangements with payday loan places. And often the payday advance groups simply won’t respond to the debt management or credit counseling group. Credit counseling groups sometimes refuse to work with payday advance places as well since the payday places don’t pay the credit counseling groups any money for collecting debt from consumers, like the credit card companies do.
Some payday advance places do offer an extended repayment plan called the EPP. The problem is that the implementation is limited to once per year and only on one loan. You can ask your cash advance place if they have an EPP (extended repayment plan).
It is probably time to throw cold water on your face and realize that your financial situation is probably beyond repair and you’ll need to consider an alternative that you never thought you would, bankruptcy. Consider this your time for a fresh start, a discharge of all your debts, and an opportunity to rebuild a new financial life.