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

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”

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.

Sincerly,
Steve

You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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About the author

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.

16 Comments

  • I read your answer to Lacy about her payday loans, and think that you need to rethink your solution. First of all, bankruptcy for 2100.00 doesn’t make any sense, it is a long term solution to a short term problem. Second, a person who defaults on payday loans is not in jeopardy of criminal charges. In order to be charged for passing bad checks, the person holding the check (which doesn’t even exist if it was an online loan) has to prove that the person writing the check intended to defraud them by writing a check for money they did not have. Since the loan company knew they didn’t have the money at the time, they could not make a case for being defrauded by the consumer.

    Additionally, most of these payday loan lenders are operating illegally. If the consumer looks into the issue, they will probably find that the lender does not have a license to legally make loans in their state. I am surprised you would even suggest there may be possible criminal charges, when most people are aware that defaulted loans are only a civil case. It makes me think that you are in the employ of the payday loan lenders. If you were honestly giving your best answer, then you need to do a bit more research.

    • Thank you! I agree. Also most states payday checks can’t are not considered a bad check and no criminal actions can be used.

      dcw

  • I have 7 payday loans out and about $8,000. Im paying $1400 every two weeks to float these, and am at the point where i cannot pay on these anylonger. I am wondering if Langhorne Debt Solutions is a reputable place to go. As i’m sure you know, they claim to be one of the only specialist in payday loan consolidation etc etc. I’ve read just a few other forum responses from public boards and the it appears they have decent reviews, and some even write they have had a pleasant experience there.

    I wanted to work out payment plans with my loan centers but only one is willing to and its over only 4 payments, correlating into a pretty high amount still.

    The other problem that persists of course is that all these loand centers have post dated checks of mine that they will deposit if i dont make a cash pmt on my loan, and the checks are for the entire amount.

    Please give me your opinion if you will. I sure would appreciate it.

    Best regards,
    Dean in Texas

  • I don’t know where you got the idea that they “don’t budge.” My one tiny company has settled over $5,000,000 worth of these loans (which average a little of $300 in principal) at an average of 49.28% of the balances since we started, including more than $400,000 settled in the past month alone.

    Having said this, I fully agree with you that for some people bankruptcy is the only sensible option. My first position as a lawyer was in a general practice firm where I specialized in personal bankrutpcy, so I am speaking from experience on that point. But, having said that, I also believe that:

    1) Neither of us knows enough about Lacy’s overall financial picture to make that recommendation to her.

    2) There are enough tools available (not including debt settlement companies like Langhorne) to deal with payday loan problems – including non-profit credit counseling, mandatory extended payment plans for storefront loans, referral of possibly illegal loans to state regulators and self-help negotiation by the borrowers themselves – that people whose debts are PRIMARILY payday loans are unlikely to need the protections of bankruptcy.

    • Dennis,

      Would you be willing to take Lacy on for free so we can use the results you guys can achieve and feature them here. It might be a great opportunity for many, including myself, to see your services in action.

      Steve

  • Wow, you gotta love the attention companies are giving us bloggers these days! It helps everyone involved, so awesome.

    I’m not going to take sides on this one as it seems that both parties are trying to help the reader asking for advice, but I do have to agree that filing bankruptcy does seem a bit hardcore. Especially for only $2k in debt (“only” in that usually you hear about those 20, 50, 100k filing away – $2k is a lot of money, but I wouldn’t think bankruptcy would come into play at that point). Then again, I’m no expert in the area.

    Great overall discussion though, I hope Lacy gets it all worked out 🙂

    • I understand what you are saying that with only $2,000 in payday loans that bankruptcy seems extreme. Unfortunately in America today the only legal recourse a consumer has to end a bad debt situation is bankruptcy. Consumers have no other power to get any creditor to accept a fair and reasonable repayment plan. The debtor could potentially engage a lawyer to fight the battle but the legal costs will mount as well and provide her with no protection.

      Payday loans are especially nasty to deal with and unless some action is taken to intervene in this situation, the debts will rapidly increase. The issue becomes if these payday loans will not budge, which they don’t, and there is no income or expectation to be able to repay these loans, and doing nothing can lead to being sued, bankruptcy seems like a reasonable course of action, only since no other solution exists. One should.

      Steve

      Steve

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