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I owe about 3500 in payday loans. I was paying about almost $1600 every two weeks in finance charges, so decided to close my account and set up payment arrangements with the companies directly. Now it seems I'm in worse shape than before. The repayment amounts are almost double the finance charges and I'm still unable to get a break. I have two questions. 1 Can Payday loans be consolidated and 2 can I send them in whatever i can without them pursuing legal action. I'm in Michigan.
Payday loan lending is legal in Michigan. Get in touch with a debt consolidation company and try to negotiate better interest rates.
You can consolidate your pdls only when they are legal. This is because pdl consolidation is applicable only for legal loans not for illegal one.
You can send them the principal balance only, if the lenders are illegal in your state. In this case you shouldn’t pay them any kind of interest or fees. Illegal lenders can’t take any legal action against you. But if the lenders are licensed, then you are liable to pay them both the principal and interest. Legal lenders can sue you because of nonpayment of debt. So make sure whether or not the pdl companies are licensed in your state.