Payday Loans

How To Repay The Mounting Debts Caused By Easy Payday Loan Cash Advance?

Payday loan cash advance programs are usually advertised as easy and fast lending solutions, which is true also but only as long as it is about getting qualified and approved for the same. It is easy to get instant loan, but it is most of the times very difficult (more difficult than you can imagine) to repay the same because these loans are extremely expensive. As per latest reports, over 90% of the consumers who borrow these loans often end up getting trapped into a vicious cycle of debt. Many of them even have to seek bankruptcy protection to get rid of their mounting debt problems caused by these easy and attractive loans. However, bankruptcy does not necessarily have to be the only solution in this regard. Following is a brief rundown on some of the better options that you can try to break the cycle of payday debt and pay it off completely. But, you are advised not to expect any miracle. You have not got into trouble within a day and there is no way to come out of it overnight. You will have to work hard with great financial discipline. If you are ready for that, the following information is for you only.

Stop Taking More Payday Loans

If you are serious about the repayment of the debts caused by payday loan cash advance programs, the first thing you have to do is to break the cycle of debt. So, stop taking more cash advances. This is one of the worst mistakes that borrowers often make in this situation. Taking a new payday loan may bring some instant cash relief to you, but the problem will be worse on the next payday. Therefore, say a big NO to new paycheck loans. Stop playing with fire; you are already burnt.

Block The Access Of Your Lenders To Your Checking Bank Account

Most of the payday loan cash advance lenders are very difficult to deal with. They are also quite unfair with their collection practices. For example, even if the check is bouncing, they keep on sending it for collection again and again, which results in increased financial burden on you, as both your lenders as well as your bank charge you a hefty amount of fee for check bouncing. You can stop this by requesting your bank to block specific check numbers (which you have given to your lenders) or unauthorized the lenders for electronic withdrawal.

Talk To Your Lenders But Do Not Let Them Harass You

When borrowers fail to make timely repayment on payday loan cash advance programs, they tend to avoid their lenders, which is not the right strategy. Though it is very much likely that they will try to harass you and terrify you by talking many things, but remember, most of the things are usually just based on thin air. For example, they may give you a warning that they are going to file a criminal lawsuit against you, which is not possible. Nonpayment of debt (including payday debt) is not a criminal offence and you cannot be sent to jail for this. Likewise, if they are trying to terrify you by saying that they are going to garnish your wages, it is also something they cannot do. They cannot even tell you to liquidate some of your assets to pay off the loan. Do not pay heed to any such warnings. But yes, they have the right to file a civil lawsuit against you, and if the court orders, your wages may be garnished or you may be forced to liquidate some of your assets. But again, even this is not a very likely situation because payday lenders usually try to avoid getting into legal complexities.

Try To Negotiate A Repayment Plan

Before you go ahead and try to negotiate a repayment plan for payday loan cash advance debts, you must first review the payday loan laws in your state to make sure your lenders are following the laws thoroughly. If you find any violation of the laws on the lenders’ part, you can use this fact in your favor. For example, if you find that the lender is not licensed to offer paycheck loans in your state, you will be obligated to pay just the principal amount without any interest or penalty charges. Do the calculation and see how much you have already paid. If you have already paid the principal amount, it only means you do not owe anything to them anymore. Just tell them the fact and warn them if they do not stop harassing you, you will file a complaint against them. In fact, it is better that you do file a complaint against them as soon as you find that they are doing their business illegally in your state.

Consolidate All Your Debts Into A Conventional Loan

If your negotiation efforts fail to work and if there are no violation of the laws on part of the lenders, a very practical and proven option is to consolidate all your payday loan cash advance debts into a new conventional loan account, such as an unsecured personal loan or a secured home equity loan. This has to be a big amount of loan, big enough to cover all your payday debts. This way, you will be able to pay off 100% of them and will eventually be left with just one conventional loan account to handle, where interest rate is low, the provisions are fair, and what is more, you even get a chance to repay in small installments.

Last, but not the least, budgeting is crucial when it comes to getting rid of the mounting debts caused by payday loan cash advance programs. So, make sure you have a proper budget to follow, something that ensures large amount of monthly savings for you.

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Posted in Payday Loans, Repayment Strategies | 1 Comment »

One Response to “How To Repay The Mounting Debts Caused By Easy Payday Loan Cash Advance?”

  1. scott says:

    Payday loan cash advance seems to be able to solve all the debt problems, the most exciting feature of such programs are that these advance can be get instantly. The repayment of such loans is extremely difficult. Most of the consumers find themselves in a position why they find no way to get out fro this never ending cycle of debts. If you are one of those consumer, then this article can provide you some very effective tips which can help you in coming out from the debt trap. First of all you have to make an effective ban on taking any further loan, sometimes we go for a new cash advance and make the payment to the previous one but always remember that this will not solve ay problem. Your negotiation skills can give you some great results. If you can talk to your lenders and convince them to work on a better repayment plan for you then your problem may be solved. If you have not done any enquiry about the license of your lender at the time of taking the loan, this is the right time for it. If your lenders are not duly licensed and not authorized for providing such loans in your state, you will be liable to pay them only the principal amount you have taken. In case of the failure of all the negotiation you can o for taking the option of consolidating all your debts into a conventional plan. By doing this you can pay off all your dets and you have to take care of only one loan account.

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