Payday Loans

How To Deal With Your Mounting Payday Loan Bill?

If you are struggling with a mounting payday loan bill and are unable to pay it off, you will be glad to know that there is an array of things that you can do in this regard to get out of your debt problems. There are plenty of risk factors associated with payday loan programs, such as extremely high rate of interest, hefty penalty charges, additional finance charges, and predatory loan terms, such as automatic rollovers, multiple collection charges, and other things like that. Because of these risk factors, these types of short-term cash advances often trap the borrowers into a viscous cycle of debt, where the outstanding debt balance keeps on growing very fast with every passing month. You can realize the horror of the situation with the very fact that the outstanding debt balance can just get doubled or even tripled within just one or two months. Following is a brief overview on some solid, result-oriented actions that you can take in this regard.

Know The Rules

When it comes to dealing with a mounting payday loan bill, the first thing that you have to do is to find out the rules and laws applicable in your state regarding payday lending. Find answers to the following questions to confirm if your lender is not violating the laws.

- Is payday lending legal in your state?
- Is your lender duly licensed to offer such programs in your state?
- Is the rate of interest that is being charged on the bill in accordance with the laws? Are you being charged higher than the set legal limit?
- What do your state laws say about provisions for rollovers and renewals of loans on nonpayment?
- Do your state laws make it mandatory for the payday lenders to offer an affordable repayment plan to those borrowers who are otherwise unable to make the repayment in full because of the kind of financial hardship they are going through?

Know Your Legal Rights

No matter which state in the United States of America you live in, the laws have provided you certain legal rights, which you can use while you are dealing with a mounting payday loan bill. For example, if you notice some violation of the laws on part of the lender, you have the right to inform your lender about it and ask them to stop treating your debts illegally. You can also file a complaint against them with the Federal Trade Commission or with your state authority. Besides that, it is also important for you to keep in mind that the Fair Debt Collection Practices Act applies to all the states of the US. It means you also have the right not to be harassed by debt collectors or lenders even if no violations of laws are taking place in relation to the loan terms. If you are getting harassing payday loan debt collection calls, you have the right to ask the lender or the debt collector to stop giving you such calls. Make this request in writing, and if they still continue calling you, you can again file a complaint against them. You can even sue them in a court for this harassment; causing such harassment is a criminal offence. On the other hand, your lenders or debt collectors cannot file a criminal lawsuit against you for the nonpayment of payday loans. It means you cannot be sent to jail just because you are unable to make the repayment on payday loans or other debts unless they charge you with fraudulent activities. In general, it is a civil case and is handled in a civil court, where if the judgment comes against you, the consequences may include a court order for wage garnishment, liquidation of certain asserts, and even forced bankruptcy. But, always remember, even such things are possible only after the court issues such an order. Your payday loan lenders or debt collectors cannot garnish your wages on their own; if they make any such attempt, it will be illegal, which you can take legal actions against.

Overall, if you are well aware of the payday loan laws applicable in your state, you will easily find a way to deal with a mounting payday loan bill quite effectively and successfully.

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