Payday Loans

Pay Day Debt Help – Take These Strong Steps To Climb Out Of The Debt Trap

Are you struggling with the mounting debts caused by short-term cash advances? Are you borrowing another cash advance every month to pay off the previous one? Are your loans being rolled over again and again every two weeks? Are you spending hours trying to figure out how to climb out of this debt trap? If your answer to all these questions is a big YES, you obviously need pay day debt help. You probably want someone to come and help you get rid of your debt problems. Though there are many debt consolidation and debt settlement companies available out there that claim to solve the problem at “just a click of mouse”, very few of them actually live up to their promises. Most of them are there just to make money from you. Therefore, my advice for you is to focus on doing it yourself rather than hiring someone to do things on your behalf. Following is a brief rundown on some strong steps that you can follow in this regard.

Do Not Get Any New Payday Advance

When it comes to getting pay day debt help, the first point of contact should be your creditor. Tell them that you are unable to make the repayment and request them to allow you to make the repayment in easy monthly installments (but without any extra cost). Some lenders may agree to this proposal, but several others may try to talk you into getting another payday loan to pay back the previous one. Any such advice or attempt from your lender is undoubtedly an unscrupulous move. Their only motive behind such advice is to trap you into the viscous cycle of debt so that they can continue sucking your hard earned money from you. It is important to note that many states have made it mandatory for the lender to offer an affordable repayment plan to the borrowers if they are unable to make the repayment otherwise. Here are the details of the applicable in different states. If you think your lenders are violating these laws, you must immediately with your state authority.

Open A New Bank Account And Close The Previous One

If you are looking out for pay day debt help and trying to get out of your debt problems, The next step is to safeguard your bank account, which means doing something that should deny access to the lenders to your account. The payday lenders design the loan contract in such a way that gives them automatic access to your bank account. Some lenders can even deduct certain amount of money directly from your paycheck. Others may just keep sending the same check again and again for clearance even if it gets bounced every time. This bouncing of check causes a serious dent on your finances, as both bank and the lender charge a hefty amount of money as check bouncing charges. You are hit twice. Considering the charges may range anywhere between $20 and $35, your outstanding dues can grow very fast if you do not take actions to stop this cycle. By closing your bank account and opening a new one, you can avoid these check bouncing charges. There are a couple of things that you must keep in mind in this regard. For example, if the bank closes your account due to repeated overdrafts, it will become very difficult (almost impossible) for you to open a new checking account. Your name will be placed on a list that will discourage banks to open a checking account in your name for at least the next five years. Therefore, it is better to get your account closed on your own before you bank does. But before you do that, make sure you also notify other lenders (such as a mortgage lender who you have authorized to withdraw funds directly from your account) and transfer the withdrawals to your new account.

You Will Not Be Sent To Jail If You Close Your Account

Don’t panic; when you close your checking bank account as part of your strategy for pay day debt help, you will not be sent to jail for this. As per the payday lending laws, lenders cannot place criminal charges against you for writing checks that bounce because of non sufficient fund in the account or because the account has already been closed. But, in order to avoid the possibilities of any fraudulent charges against you, do not forget to inform your payday lender in advance about it explaining the reason why you have been forced to take this move. If you have followed the first step requesting the lender for a repayment plan and if that request has been rejected, you can easily justify your move.

Consequences Of Closing Your Account

Though nothing is illegal when you close your checking account, you must still be ready to face some obvious consequences. For example, your lender may start giving you harassing phone calls; they may even try to contact you by visiting your home or office. Again, don’t panic. You have got some legal rights. So, use your rights and write a letter to your lender informing that you are not at all interested in getting new payday loans and that you do not even want them to contact you either by personal visits or through phone calls. As per the laws, the lender must honor this request. If they don’t, you can file a complaint against them. Make sure you also tell them in that letter that you are working on to get some pay day debt help and that you will make the repayment as soon as you are able. Request them again to fanaticize an arrangement that should allow you to make the repayment in small monthly installments. The chances are that this time your lender will agree to such repayment proposal.

Always remember, as far as this form of predatory lending is concerned, the laws in most states are in favor of the borrower. When you take these strict actions, you are very much likely to convince the lender to make things easier and favorable for you. Overall, when you follow a do-it-yourself approach for pay day debt help and take some informed decisions, you can easily climb out of the debt trap.


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Posted in Payday Loans, Repayment Strategies | 1 Comment »

One Response to “Pay Day Debt Help – Take These Strong Steps To Climb Out Of The Debt Trap”

  1. james says:

    This is a nice article for the persons who are trapped in the web of debt, it shows the way outs to get rid of this. First thing is that you have to self determine to get out of this web of lending houses don’t go for the help of any institution to consolidate your loans as there are so many fake houses those will fool you by charging amount for the service and won’t do anything. Talk to your lending houses that you are willing to pay the amount but not in a position to pay it right now. They will definitely come out with simplified plan. Do not works on a plan that suggest you to another loan to pay the previous one as this will continuously increase your interest and principal? These options are simply there to cut your pockets. There are so many laws which support the borrower and impose the lenders to implement a repayment plan to help you to clear your dues. Make sure that you shall discontinue using your account associated with lenders to pay off your monthly installments. This will stop all your automatic deductions.

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