Archive for December, 2010

Get Rid Of Payday Debt Problems Without Getting Into Trouble

Payday loans when remain unpaid for a long time can seriously damage your finances. But, luckily there are still several ways out there that can help you get rid of payday debt problems without getting into any further trouble. Payday loans often look a very attractive option to cash-strapped consumers who have some urgent expenses to meet or some high-priority urgent bills to pay off. Though it is true that these types of lending programs can help you get instant cash as and when you need it, but there are some serious drawbacks that you must be well aware of. It is no more a secret that payday lenders charge an extremely high rate of interest that can go as high as 700% per annum or even more. As an average, the borrowers are required to pay somewhere around $40-50 for every $100 of payday loan they borrow for a 14-day period.

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You can imagine how horrible things can take shape if you miss the payment on its due date and gets the loan term extended for one month; you will in that case be liable to pay over $150 on every $100 you have borrowed. If the loan account keeps on rolling over again and again, things can soon go out of your control and you may just don’t have an idea on how to get out of your debt problems. The good news is that the laws in most states are favorable to consumers. Following is a brief rundown on how you can take control of your situations.

Do A Thorough Review Of Your Payment History

While you are looking out for ways on how to get rid of payday debt problems, the first thing you have to do is to review your payment history. DO a thorough analysis and find out how much money you have already paid toward those debt accounts. Is the amount you paid larger than the amount of money you had originally borrowed? If yes, how much extra amount have you already paid? Now look at the payday loan laws applicable in your state. There are certain limitations on how much interest and fees can be charged by payday loan companies for such loans. Find out if you have already paid that much money in extra to cover the legally allowed interest and fees. If yes, there is no need to pay even a single penny more to your lenders. You can just give them a phone call and let them know that you have done your calculations and found out that you have already paid their loan and that they must stop calling you for payments. If they still continue harassing you for payments, you can file a complaint with your state authority as well as to the FTC (Federal Trade Commission).

Write A “Cease And Desist” Letter To The Payday Lenders

If you are dealing with the above mentioned situation, you can easily get rid of payday debt problems by writing a ‘cease and desist’ letter to payday lenders if the phone calls are not enough to stop the harassment. Do not forget to keep a copy of that letter to yourself. You can use this letter as a proof when you file a complaint against any harassment on part of the lenders or collection agencies. As per the laws, they must stop all collection attempts after receiving this letter from you provided your calculation is right.

Get Help From A Lawyer

If you are not sure whether you still legally owe anything to your lenders, you are recommended to first consult an experienced lawyer. Make sure that the attorney you are consulting with is duly licensed to work in your state and that they have specialization in the state payday loan laws.

Get Help From A Debt Settlement Counselor

Even if you are living in a state where consumers have not been provided much legal protection, you still have many ways to get rid of payday debt problems. For example, you can sign up with a debt settlement company. As part of a debt settlement program, you may get an opportunity to settle your entire debt by paying a reduced amount of money than the total outstanding balance on your payday loan accounts. However, this type of option might be applicable in only those extreme cases, where you are going through a very difficult financial phase and the total amount of debt is too much to pay off in full with the kind of income you have. A reputable debt settlement company can negotiate a fair deal with your lenders on your behalf.

Overall, there can be a wide array of options that you can choose to go for to get rid of payday debt problems. But, make sure you thoroughly analyze your actual situation first before you decide to go with a specific strategy.

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