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Cant pay off payday loans-what can I do?

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Pam454
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Subject: Cant pay off payday loans-what can I do?
 
Posted on Thu Jun 18, 2009 8:43 am  

It has been months I have been trying to fix my credit report. Few years ago foolishly took some payday loans which I was unable to repay. They have been after me. Now I have been laid-off and finding it difficult to pay off the debt. If I pay the pdl I fall behind on by credit card payments. I have so many creditors calling every day. I have only managed to make regular payments for my mortgage. But now I have these creditors threatening to sue me. I don't have enough o pay all the debts. We have a small business my wife looks after. We don't have enough to run the household if we spend on paying off the debts. I think I should file for bankruptcy but I know that my credit records will be spoilt forever. I need your advice. Please help.
rachael



Joined: 11 May 2009
rachael's page
Posts: 233



6576 Magic Points

 
Posted on Thu Jun 18, 2009 9:10 am  

Hi Pam,

Instead of filing for bankruptcy, you can take a debt consolidation loan. You will get the following 3 benefits by consolidating the debts:

1) Only one payment- You will have to make a single monthly payment for multiple debts. It is easier to budget your expenses, if you have to make only one payment for many debt accounts. Another advantage is that you don't have to keep track of all your accounts, which is sometimes very confusing.

2) Debt amount is reduced- You will have to pay less than what you owe, as the the interest rates are reduced through negotiation with the creditor. Any penalty charges for missed or late payments can also be eliminated by debt consolidation.

3) Get rid of collection calls- As you will make a single consolidated payment for multiple debts, the individual creditors/collection agencies will stop contacting you. This can save you of a great deal of mental stress.

Hope this will help Smile
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Looking forward to a debt-free life.
internet15



Joined: 16 Apr 2009
internet15's page
Posts: 50



2427 Magic Points

 
Posted on Mon Jun 22, 2009 12:21 pm  

This is never a question you want to ask, but it does happen. Many people intend to pay back their payday loan right on time, but circumstances arise and they are not able to. So what options does this leave you with? You still have to pay back at some point. You do not want to be stuck with that helpless feeling for very long.
The first thing you need to do is approach your lender with the problem. Let them know that you may have trouble paying off and if there is anything the two of you can do about it. You do not want this loan to go to collections. You may only need a small extension on the loan. See if they will give you a couple days. But more likely you will need a payment plan.
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SueAnn
Guest






Subject: Want to pay what I owe but need more time
 
Posted on Thu Apr 08, 2010 3:04 pm  

Husband walked away leaving me with all the bills. I now have three payday loans, mortgage payment, utilities, credit card debts and attorney fees. I work and don't mind paying my bills and the only thing personally that I need is to pay my tithes,food and gas. the rest can go towards paying everyone off, but at the rate that I'm going right now after just paying the interest on the payday loans i will never be able to pay off the principal and my other bill will start to go over 30-days behind. I'm going into the 15-21 day late pay on my other bills to keep the interest on the payday loans current. Can you help?
Aaron

Aaron

Joined: 08 Feb 2010
Aaron's page
Posts: 2632



48565 Magic Points

Subject: paying off pay day loans
 
Posted on Fri Apr 09, 2010 10:31 am  

Hi,

You can opt for payday loan consolidation. With loan consolidation you need to make only a single payment each month. In loan consolidation program, you pay the money to the consolidation company, who in turn disburses your payments towards each of your lenders.

Other than this, before defaulting on your payments you should inform your creditors. If you have been making on-time payments regularly, your creditors might waive off the late fees.

Hope this helps,

Aaron
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Keep in touch Smile
RoseG
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Subject: laid off with pay day loan debt
 
Posted on Wed May 09, 2012 4:14 pm  

Rachael,
I have same problem as Pam. I was laid off and have 2 pay day loans of $500.00 each, but with the small unemployment check and not being able to find a job, it is difficult to keep up with the payday loans. Your advice about obtaining a consolidation loan is great, but do you realize why people get involved with payday loans? More than likely it is because people have bad credit and the only alternative is to apply for pay day loans for some emergencies such as medical illness and car repairs. I have tried to get a home equity loan and my mortgage is current and paid on time but due to bad credit with some medical bills and credit card write off, I was obviously not approved. So your advice is not so great.
RoseG
Guest






Subject: laid off with pay day loan debt
 
Posted on Wed May 09, 2012 4:14 pm  

Rachael,
I have same problem as Pam. I was laid off and have 2 pay day loans of $500.00 each, but with the small unemployment check and not being able to find a job, it is difficult to keep up with the payday loans. Your advice about obtaining a consolidation loan is great, but do you realize why people get involved with payday loans? More than likely it is because people have bad credit and the only alternative is to apply for pay day loans for some emergencies such as medical illness and car repairs. I have tried to get a home equity loan and my mortgage is current and paid on time but due to bad credit with some medical bills and credit card write off, I was obviously not approved. So your advice is not so great.

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