has anyone ever used a payday loan consolidation program to pay off multiple payday loans?
Written By: admin on June 14, 2009
One Comment
I've gotten myself into a bit of distress by borrowing first from one payday loan center, then another, and now i'm up to 5 different places. I am putting myself further and further in debt because i feel like i am working to pay the fees. I want to consolidate but concerned if it is a excellent thought. Please help!!
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Tags: different places, loan center, Payday Loan, Payday LoanTags: different places, loan center, Payday Loan
Please, please, PLEASE whatever you do…DO NOT take out another loan to pay off payday loans! You cannot get yourself out of debt by making more debt!
Most of those "payday loan consolidation" places are a scam made by the very same predatory payday lenders themselves! You will find that they will not only take your money, but none of your payday loans will be paid off and you will end up in even worse financial condition.
I, too, was caught in the multiple payday loan cycle for 2 years. The best thing you can do to get yourself off the payday loan treadmill is to close your bank account and start all over. Go to a completely different bank, open a new account, and switch your direct deposit to your new bank BEFORE the next cycle of payday loan debits start hitting. Also close the bank account before those payday loan debits so that you don't face NSF charges from your bank. If you can't get a new bank account, then just switch to live paychecks until you clean up your credit…check cashing fees would still be far less then what you are paying in bogus 400% annual interest charges to payday loan sharks. You will start to reckon more clearly and rationally once you have actual control over your WHOLE paycheck. Send letters to each of the payday lenders revoking any wage assignments, ach authorizations, etc. Most importantly, don't ever give out your new bank account info to a payday loan company again…under any circumstances. Find out if the payday lenders are even legal in your state and study your local payday loan laws to see what your consumer rights are. Don't worry about closing your account and walking away from this mess temporarily…in most states, you cannot be prosecuted for unsecured debt. The most they can do is call and harass the crap out of you. Don't listen to their threats…they are all empty and they know they can't do anything to you. Once you get your money back in your hands, you re-gain the control back from them. You can set payment plans with them on your terms. Make a vow to yourself to never, under any circumstances, allow anyone else to control your money/livelyhood ever again.
Visit the forums at http://www.debtconsolidationcare.com/ to get completely free help, advice, letter templates, and contact info from others who have suffered with the same financial stress you are going thru.
Best of luck to you! Stay strong and stand your ground!