Posts Tagged ‘deal with defaulted Internet payday loans’

Dealing With Defaulted Internet Payday Loans

When it comes to dealing with defaulted Internet payday loans, there are several things that you need to take into your careful consideration. It is not very uncommon for people to borrow multiple short-term cash advances and then to wonder how to pay off the same. Anybody can borrow these loans and get some quick cash, even those with bad credit or with bankruptcy records, but the journey to repayment is not always an easy one. Most people end up defaulting. Luckily, even though the interest rates on these loans are extremely high, there are still plenty of things that you can do to deal with these types of debt problems. Following is a brief overview on how to go about it.

Request The Lender For An Affordable Repayment Plan

While you are dealing with defaulted Internet payday loans, the first thing you have to do is to request the lender to allow you to make the repayment in small installments over a certain period of time. Most people tend to start avoiding the creditors when they default on a debt account. This is not at all the right strategies. If you do so, you will lose your chances of any negotiation. Besides that, very soon, you are also likely to start getting harassing collection calls. Therefore, the best thing you can do at this stage is to face the situation and talk to your creditor. Tell them that you are going through a difficult phase and that it is not at all possible for you to pay off the debts as per the current repayment plan. Request them to make the terms a little more favorable. Since it is an Internet based lender, you can write them an email or give them a phone call.

Explore Your Options For Debt Settlement

If the defaulted Internet payday loans belong to the same lender, you can contact them to find out if there is an option for debt settlement, where they can agree to eliminate the entire debt if you pay a reduced amount of money. In extreme cases, where you are suffering from serious illness or injuries and have lost your job, the creditors may agree for such an arrangement. However, you should not consider that as a compulsory eligibility criterion. Even if you are not going through such extreme situations, you can still have a chance to qualify fro a debt settlement program. So, it is worth trying.

Be Aware Of The State Laws And Your Legal Rights

Almost every state in the United States of America has now enacted several payday loan laws. The more you are aware of the same, the better you will be able to plan on how to deal with defaulted Internet payday loans. The laws have also provided certain legal rights. You must review the existing loan contracts thoroughly in order to find out if your lenders are actually violating some of the laws. If yes, you must let them know that you are aware of the laws and your legal rights and that if they do not charge you reasonably as per the laws, you are going to file a complaint against them. Your lender may try to confuse you by saying that since their offices are not located in your state and so the laws of your state do not apply to them. It is juts not true. If they have issued payday loans to a borrower who resides in this state, they must abide by the state laws.

Contact The Local Welfare Office

If you find out that the lenders have violated the state laws, you can file a complaint with your state authority or with your local welfare office. The Authorities out there will guide you on how to deal with the defaulted Internet payday loans.

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