Payday Loans

How To Get Relief From Payday Loan Debts?

Relief from payday loan debts sometimes sounds like a far-fetched idea, especially when you are trapped into a viscous cycle of debt, where your debts keep on increasing fast non-stop. The only option that seems viable is probably bankruptcy. Availing bankruptcy protection definitely is an option but you are strongly recommended to go for it only if you are 100% sure that there are no better alternatives available out there. If you are unable to find any better alternative, you are probably not well aware of your legal rights and the kind of options that the payday loan laws in your state provide to the borrowers. The following information should help you find out an effective debt solution without requiring you to file for bankruptcy.

Tell Your Creditors That You Are Considering Filing For Bankruptcy

While you are working on your strategies to get relief from payday loan debts, the first thing that you have to do is to contact your creditors. In general, borrowers usually stop responding to calls from debt collectors and lenders. But, if you seriously want a solution for your debts, you must start receiving those calls. When they ask about debt payments, tell them that you are going through some personal and financial problems and that you cannot make the payments now. Do not forget to add that you are also considering filing for bankruptcy. Ask them to tell you if they have some better alternatives for you. Once the ball is the creditors’ court, they will not return it without any solution. In such cases, they are very much likely to offer you an affordable repayment plan. Catch such offers as and when they come your way.

Hire A Credit Counselor To Negotiate A Debt Solution Deal With Your Creditors

If you are not confident enough to talk to your creditors about relief from payday loan debts, you are advised to hire an experienced credit counselor to do this on your behalf. An expert credit counseling professional will maximize your chances of getting a favorable deal with the creditors. These counselors will definitely charge you a fee, but when you look at the amount of money they can actually help you save while helping you to get rid of your debt problems, you will not mind paying their fee. Just make sure that the counselor you are working with is a legitimate and reputable one. Besides that, there must also be complete transparency in the process, which means you will also have to do close monitoring of whether your creditors are being paid in a timely manner or not. Do not sign up with a counseling agency that requires you to pay their fee in advance. As per the laws, these types of agencies must first perform the task they promise and then request for the payment for their fee.

If you are still not sure on how to get relief from payday loan debts, you always have an option to discuss your situation with the state authority that regulates payday lending. The authorities out there will definitely show you some ways on how to bid farewell to your payday debts and regain control of your finances.

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