Okay, I have 4 payday loans out. The amount to pay them all out would be about $1500 ($330, $330, $230, & $600). Every two weeks, I pay about $200-$240 in fees alone ($400-$480 a month). I cannot see how I can pay these off in a timely way because my budget is so tight (I've already paid the amount of each loan in fees at least one time). I am so ready to do stop payments on each check that is out and on the ach debit for the big one that is an online payday loan. That way I could use the monthly amount of the fees to pay off each loan over 4-5 months and be free. However, I am scared of the repercussions. What would happen if I do this? Will I be thrown in jail? In front of Judge Hatchet? Paychecks garnished? Arbitration is what each loan contract talks about, but I don't know what that really is. Should I write to each company first to make alternative arrangements? Will my bank accounts be destroyed? My credit can't get much worse (471 last time I checked). My loans are with American Cash Advance, Budget Line, Payday One, & Advance America. Anyone else do this? What happened? Thanks.

Hi Stacyppl!
Is your question primarily about payday loans?
Or is it about your budget?
If it is rather about the payday loans, how about posting in the Credit forum? If you do, add your state.

Thanks! It's about handling the payday loans.

Hi Stacy;

Are the payday lenders local to you, or are they online?
The online ones routinely violate state PDL laws. They tend to yell and scream if you stop paying but are often hesitant to sue because they aren't operating legally in many cases.
The brick-and-mortar lenders (local) tend to follow the state laws and are quick to file in small claims.

You might check here:
http://www.ncsl.org/programs/banking/paydaylend-intro.htm

or here:
http://www.paydayloaninfo.org/states.cfm


to see if the lenders in question are operating legally.

Jesus Mary and Joseph!

As you already know this is a horrible trap to get into. Could you mow some yards for the new few weeks to make enough to pay them off?

HI Stacy My name is Jen and I have used PDLs in the past.

::: every say "Hi Jen" in unison :::::





Here is a recent thread where PDLs were discussed: http://creditboards.com/forums/index.php?s...8&hl=payday


As you'll see, personally, I walked away from mine.... BUT.... I live in a consumer friendly state, the PDLs broke several laws, and I had paid back the principal. I would not make that decision easily and I could not have done it without consulting my AG in my state. When I quit paying, they stopped charging interest, but that is not always the case for all.

Can you give us a little more detail about how much you've paid, original principal, etc?




Radi always has great advice, and I would start at those links provided.


In no particular order, here are some other threads about PDLs that might be able to help. Good luck.

http://creditboards.com/forums/index.php?s...4&hl=payday (this one concerns deceptive loaning PDL practices)

http://creditboards.com/forums/index.php?s...7&hl=payday

http://creditboards.com/forums/index.php?s...1&hl=payday

http://creditboards.com/forums/index.php?s...5&hl=payday (OP wants to know if she will go to jail for PDLs)

http://creditboards.com/forums/index.php?s...7&hl=payday (PDL lending in NY)

http://creditboards.com/forums/index.php?s...9&hl=payday (PDLs are a written contract, useful for SOL if it goes to a CA)

http://creditboards.com/forums/index.php?s...3&hl=payday (harassment by PDLs)

http://creditboards.com/forums/index.php?s...3&hl=payday (PDLs and BK)

http://creditboards.com/forums/index.php?s...8&hl=payday (a gentleman with 4 PDLs and needs help getting out from under them)

I might be missing something, but it sounds to me like you just need $1500 to make them go away. Is that right?

Is there any way you could pick up a short-term temporary job to earn this as quickly as possible? And sell whatever you can?


I know it will feel GREAT to be free from them, and it sounds like facing it and focusing on it is going to make it happen for you!

Hi Stacy,

I don't have any words of wisdom for you as I have no first hand experience with pay day loans, but I can certainly empathize with the predicament that you're in.

Hang in there, girl!

Best wishes and good luck to you!

hi stacy, i too had them in the past and i actually paid a little more than the fees on the principal. but then again i only had one. hang in there and start your research. you have come to the right place. more than likely someone else was in your shoe already. cheer up!

Hello-

Payday loans can make life a pure hell!! I have been there. Fortunately the state that I live in (CO) instituted a payment plan option to give people a way out. What state are you in? Who are your lenders? Are they members of the CFSA (http://www.cfsa.net/)? If so, the CSFA has a payment plan program where you payoff over four payments. If your lenders are not members, perhaps you could acquire new loans from members to payoff the other loans so that you can get on a payment plan. Other ideas & advice:

1. Please don't disappear or stop paying.
2. Talk to the Manager of the shop. Tell them your situation and that you need a way out. There have been times in my past when exceptions were made because I always paid on time.
3. Set up your situation on a spreadsheet to keep track. I was able to project payoffs and make plans by simply paying an extra $20 or whatever.
4. Shop around for the best terms. In CO, the max terms are set by law. However there are places that lend for longer periods of time, thus reducing interest (more $$ that can go toward reducing principle).
5. Look for other sources that charge less (credit union, bank, family).
6. Earn more to tackle this (short term job).
7. This industry is continually under regulatory pressure. I would consult the state governing body that regulates them IF they refuse to work with you.
8. Again, PLEASE do not just walk away!! Pay on time, do what you can to keep a good credit rating!!

Hang in there. Get through this then stay away from these places!!!

Hey stacy,

I used to use payday loans as backup money, but since I joined a credit union, I have found a better way to take care of life's crazy knots. I'm surprised they let you take out loans at multiple locations. Here in MI, the woman explained to my at CheckNGo that everyone is linked up to the same system/application. So If I decided to go to another Payday Loan Operator, I would be denied because I borrowed from another one. I don't know how true that is though, and I never wanted to test that.

I would take maximum of $500, which would mean I would have to pay back about $590 every 2 weeks. That meant I was giving them an extra $180 every month. Made my stomach turned when I finally realized that. I joined a credit union that gave me a line of credit (i.e. I don't have the best credit around), up to 500. Now I use my line of credit instead of CheckNGo. The savings was great. I only pay the CU $15 a month to use the full amount, whereas I was paying CheckNGo $180 month.

So, what I am trying to say is; try to get a line of credit your bank/CU for 1500 and pay off all the Payday loans. It's much cheaper and it'll help build credit.

My 2 cents.
-Bunny

you do realize that stopping payment and not "renewing" or "rolling over" the loans may stop the accruing interest, right?

Sure, perhaps the interest will stop. BUT:

1. You will be reported to Checksystems
2. They will try very hard to collect...ie phone calls at home and work, phone calls to refrences you listed.
3. Penalty fees.
4. Legal violations??
5. In-person visits to collect
6. In CO the businesses maintain a database of these transactions. If a loan goes bad you will probably not be trusted for future loans (perhaps that is good!)
7. You made an agreement to abide by those terms

I do not work in that industry. I think they are predators that prey on people in desperate situations. However, I think that by not working with them, or getting creative, to solve the situation the whole thing gets worse. My point is to not keep digging a bigger hole. Find a way to deal with your problems honorably and then STAY AWAY from them!!

I would still like to know what state the OP is in. That makes a big difference.

stacy?

where did she go? I hope she sees all the good tips here.

As for the comment in bold, I won't even go there how judgmental and many other things that is. I'm going with the assumption that I'm misreading what you wrote


As for the other things..... we'll just have to agree to disagree. FOR ME - walking away was infinitely better than paying every 15 days and not even paying off the interest. After I walked away, they got their principal and then some, but I saved hundreds (thousand?) in fees.

Well, what is your definition of a contract? Why is what I wrote judgmental by any stretch? If you sign a contract, the honorable action to take is to fulfill the terms you agreed to. It is fairly black and white (unless some fraud was involved). I suppose if the OP can accept the consequences of walking away, that is their choice. BUT. There will be some consequences that could create larger problems down the road. If you read my original post I explained many ideas for dealing with the issue in ways that ended the situation without running away or paying interest forever.

Are you telling the OP to just walk away?? If so, you are exactly right, we do disagree and I think it is absurd and reckless (nothing personal, I usually enjoy your posts). I want good credit so I can have choices when life happens and I need some money (like a high cl from NFCU). That way I can stay away from the payday loan places that are on almost every corner here.

I have been a member here for a long time. If there is one thing I have learned it is to avoid credit issues in the first place. Walking away only creates new problems whether it is from a loan shark or a credit card. If you try to first work out a plan with a credit grantor perhaps you can avoid all the lates and other ugly marks, etc. I am not trying to judge you or anyone. I just saw a subject that I am unfortunately intimately familiar with and I do feel my suggestions are valid options to overcome the problem.

Many of the online payday lender's contracts violate state law regarding usury, number of simultaneous loans, repayment terms, rollovers and such. These "contracts" are not valid in the first place.
Perhaps 75% of the online lenders operate from overseas to attempt to avoid prosecution by US authorities. It's well known that some are money laundering operations for organized crime, it's suspected that some may additionally perform the same function for terrorist organizations. These are NOT nice people.

The B&M "storefront" lenders are normally legit and tend to follow the law more closely, but they are often the worst offenders when it comes to violating collection related laws- threatening prosecution for the post-dated check is a big one.
They're also more likely to work out an installment repayment plan with you- it's sometimes required by state law. (which is why we're curious which state the OP lives in)

Everything about the payday lending business is carefully designed to keep you in debt. Their business model wasn't created to "help the consumer in between paydays". It was the work of financial and human behavioral consultants, who created a model that tends to keep people in debt for months- and months- and months as they roll over loans they cannot fully repay.

Talking "honor" and payday lenders in the same breath is an oxymoronish thing to do. They exist for one reason- to screw you.
Skip worrying about the honorable thing with these douchebags (© 2008 LKH )and figure out your legal options- and extricate yourself appropriately.

I'd like you to take that POV/attitude and head over to the KB forum and tell all those people they are "less than honorable" by not fulfilling their contracts. The people who are posting at 2am in the main forum because they will probably lose their home? Go ahead.... let them know how since they signed a contract for their home, their only choice is to honor it...


I was in deep with multiple PDLs and I was simply sharing with the OP what worked for ME and was INFINITELY less painful than trying to keep up. Secondly, I live in a state that is VERY anti-PDL and has good consumer laws.

Why don't you get off your moral high horse?

quite a few states won't allow prosecution under a post-dated check (the PDL took the check knowing it wasn't good ), but to the average consumer who finds anything about the law intimidating..... they will believe these places and will think they are going to jail, when many times, it all started with needing an erxtra $150 for food or floating daycare.


Radi is right, "honor" and pay-day-loans do NOT belong in the same sentence.

I think my point is being missed here. I am not on any 'moral high horse'. I am glad that you brought up mortgages. This is another example where someone made a 'deal with the devil' and can't stay in when the time comes to pay up. These people are scrambling to find a way out. Some, perhaps many, do walk away and face the consequences of that choice (although I am not sure they would recommend it to others). From what I have seen, many are looking for ALTERNATIVES. Be it a refi, short sell, etc. They are DEALING with the issue and walk away as a LAST RESORT. I parallel this to payday loans. There are ways to DEAL with the issue. I outlined my ideas (and what worked for me) in my original post. Please advise what is objectionable, so that I can learn.

I don't believe I represented the PL industry as honorable. They are scum, just like the loan officers that encouraged homeowners to borrow too much or sold products the client could not afford. However, if I sign a contract it is on MY honor to fulfill the contractual agreement that I signed and make darn sure I understand what I am signing. I apologize if this is not clear. It would be sort of interesting if you could just walk into a place, take cash and then disappear.

Please understand that I am in no way disrespecting you or your point of view. We disagree, but I still respect you (that is what the US is about).

Are you certain the contract the OP signed is even legal and enforceable in their state? Is it your opinion the consumer needs to honor "contracts" that violate their state laws?

They cannot ask the law to uphold a contract that was not written under the guidelines of the law.

I had payday loans. I stopped payment on the checks and never heard another peep from them. YMMV

I've read this several times. Did you mean BK forum?

yes ty leo

I'm back!!! Busy with end-of-the-year school stuff. I am going back to read all the posts. Then, I will give you guys an update on my situation. Thanks for the responses!

Okay. I live in TN. I did contact the AG office and, at first, I did not get a response. I emailed again today and I was told that PaydayOne is not licensed to operate in TN. However, I had already called them to work out a repayment plan. I now owe $950 (includes a $150 fee). I set up a plan to pay $190 every two weeks over 5 weeks. I guess I could just try to walk away, but I would feel guilty. I will probably just try to pay it off as agreed under the repayment plan. As for the 3 B&M pdls, I do not think that TN has a system of checks and balances to make sure that you have no more than two loans out totalling no more than $500. My 3 loans total $890. One of them is now offering an alternative repayment plan that I am going to apply for. I am also going to ask the other two about this as well. I will apply to the credit union for a loan, but I am sure I will be denied. Thank you for all of your support and responses. I was extremely desperate when I first posted. I wanted to just make it all go away. I feel a little better now, although I am still financially strapped. I have nothing to sell, but I am on the look out for ways to make a little extra cash. My goal is to be pdl-free by December. I will never look twice at a pdl again! Thanks.

Okay, I have two more payments to pay off PayDayOne. I will be finished with them at the end of the month. I will then use that money ($380/mo) to pay off the other payday loans. I hope to finish with them by the end of September. After that, I need to to pay off the delinquent accounts that are reported negatively on my cr's (hopefully, get some pay for deletions). I also need to payoff Cashcall ($2600). I think I will tackle the negative stuff first because cashcall reports positively. Anyway, thanks for your input, I feel much more "empowered" now to get myself out of this mess.

Congrats - sounds like you're on the right track!!

you would feel guilty paying a loan shark that is operating in your state illegally?

First of all, well done. You are doing an amazing job at working through a very tough issue.

I have a question: can you, in any way, get a store credit card? maybe even 3-4 in one day (so you have them by the time the inquiries hit your report)?

The point is that 30% on a credit card is a lot better than 500% on a PDL. You can buy some stuff at the store - it doesn't matter what - get the store CC, wait a week until you get the card, and return the stuff. Then use the credit line for a cash advance (pay the 3% fee) and use that money to pay off the PDL's. Then work towards paying the CC's back at much better terms than the PDL's.

I have no idea if your credit is too poor to get store CC's, but their policies are usually more lenient.

Jen23514,
My further research revealed that TN allows online pdl's to operate, but they just do not have a set of regulations in place. Online loan companies can operate according to their own states' rules.

Onwards,
I have not applied for a store card in a year or two. As I will reveal in another post, I have too many charge offs. I will just clean up slowly and go from there.

Thanks, guys!

Hello

I've looked for an answer to my questions but cannot find one. I am hoping someone can help. or point me in the right direction

I TOOK OUT A PAYDAY LOAN (IMPACT CASH) stupid me... anyway, I missed a payment. I got a few phone calls and when I returned them, the ext went to a busy signal, finally after the 3rd try, I pushed 0 and got a girl named Nicole.she said that ext was on a rotary dial and it would do that?? ... I told her who I was and she explained I missed a payment and wanted to setp up a payment plan. I also asked why the payoff was and it jumped from 300 + 90 interest to suddenly 490 . She stated they added fees. She offered me a payoff ( 30.00 less than owed) Anyway, I set up to call her with a cc payment for the 25th, as that would be my next paydate. She sent me a confirmation email with her ext and said to call Fri.

Since then I have received (since the 17th) 10 different agents calling me, 8 emails and 6 text messages. I have responded to all the emails stating I have set up terms with nicole and one returned my email saying they had a new system and it was acting queer!! I have talked to most of the callers, they say the system will keep calling till I pay, now the newest voice and email message I received last night from another agent named Michael is that I have for the last week Impacr Agents have been trying to reach me and I have not responded.. , so I am going to collections if I do not respond in 24 hours. etc etc...I have kept the phone records , a couple of the voice mails as well as the emails... where do I turn next.. HELP!! Do I just ignore till Friday, do I contact my lawyer and tell Michael that will be the next contact... I checked my state to see if they were registered (FL) they are not.... any help at this point will be accepted.

Thanks
Vic

When I arranged a payment plan, I owed $950. I was told that they could break it up into five installments and no other fees would be added. I was sent an email with this confirmation and a contact number. I was not sent any other email nor was contacted by phone by anyone. I would email and/or call the person you originally talked to to confirm for Friday, if it is not too late. Pay as soon as the company opens on Friday. If you can pay the whole thing off, good. State that it is a one-time payment. Make sure that they will not try to debit your account for anything else. If not, get something in writing about a payment plan. Respond to all the calls and text messages as reasonably as you can, stating that you received an agreement in writing from so-and-so on such-and-such date stating blah blah blah. After paying them off, run as fast as you can and never look back!

PayDayOne is officially PAID IN FULL! Now I am going to tackle the smallest payday loan of the other 3 that I have left. I will take the $190 I was paying PayDayOne every two weeks and apply toward the next loan ($230). I should be able to totally pay that loan off on the 15th of August. I am seeing flickers of light!

Glad you are making progress Stacy!

UPDATE! I have paid off another payday lender ($230)! Now I have two payday loans out , both for $330. I will try to knock out both by the end of October.

Keep us posted. I like hearing your progress.

me too