Help With Payday Loans

| January 3, 2012

Payday loans can cause a cycle of only paying the interest and never paying down the principal. It can be very difficult to get out of this cycle especially when funds are tight. There is some help available to get the debt owed to payday loan companies paid off without ending up in financial ruin. The best advice is to start avoiding payday loans immediately and do not apply for another one no matter how dire the circumstances. It is also important to contact the payday loan companies immediately to discuss your payment options. Although tempting, do not close any bank accounts that payday loan companies have on file. Closing an account that is still on file can result in additional charges so it is best to work with the company and not avoid the loans.

The first step to getting help with payday loans is to not open any new loans. It can be tempting to take out one last loan to pay the already outstanding debt. This is not a good idea. If you do want to take out one loan to pay off the remaining payday loan debt, do so through conventional lending methods. Even secured personal loans such as title loans are better than taking out a second or third payday loan. Discuss financing options with your bank to see if you could get a consolidation loan.

Secondly, it is important to contact the companies you have loans with immediately. Some of them will be willing to make payment arrangements with you. The payments may not be as low as only the interest on the loan but they will begin to pay the principal down. It is important that if you make payment arrangements that you follow through on time each time a payment is due.

The last thing you want to do is close an account that has a payday loan associated with it. When you close the account, the payday loan company will continue to process your payments. When the payments are returned you can face additional returned check charges from the payday loan company. Once you have these negative marks on your account with them they will be much less likely to work with you on making payment arrangements.

No matter what the solution to your specific problem might be there is help with payday loans. The ideal situation is to use a lower interest loan or credit card to pay off all of the debt and then make the payments on the loan or credit card. Although ideal, this is not always feasible so calling the payday loan companies directly can go a long way. Explain your situation and that you want to rectify it immediately. If they are willing to help do your part to keep up with the agreement. Remember to never close a bank account that has a payday loan still outstanding associated with it. Doing so could result in additional fees and even prevent the payday loan company from working with you to lower your debt.

Category: Payday Loan

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