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Paying off payday loans ....

Last post Sun, Oct 4 2009 3:09 PM by aricht. 13 replies.
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  • Fri, Aug 7 2009 9:22 AM

    Paying off payday loans ....

    Yes, I admit it. I was dumb - taking out payday loans (total of three) because I was too prideful to ask anyone else for help. This is currently the major budget-breaker for me.

    I'm trying to stay positive about paying them off (made a payment arrangement for one, and am working all the overtime I can to pay off the others), but it's very discouraging ... one, because I knew I should not have done that and two, it's a lot of freakin' money!! Meaning, right now I cannot buy ANYTHING until these are paid off. In addition, I have health conditions that occasionally cause me to miss work - and if I do so, it's unpaid time.

    Any ideas? suggestions? kicks in the butt? All are welcome. Tongue Tied

    ~~ Kathy ~~
    "Credit buying is much like being drunk. The buzz happens immediately, and it gives you a lift. The hangover comes the day after."
  • Fri, Aug 7 2009 9:49 AM In reply to

    Re: Paying off payday loans ....

    It sounds to me like you're doing your best.  You made a mistake and you learned from it.  You may want to call the other 2 places and see about payment arrangements with them.  Payday loans are bad, but a lot of people use them.  Be grateful you learned and it was only 3; some people have dozens of them.

    Random bit about payday loans: my niece works for a place as customer service rep and was recently written up b/c she wouldn't push the max amount on people.  Customers would come in and apply for, say, $500 and she would see that they could get $1500; her job was to push them to take the $1500.  When she didn't, she got written up.  The worst part is that jobs are scarce & she can't quit until she finds another job to replace the crappy one she's in now.  She prays a lot that she is not fired for being honest with customers.

    Officially Recognized Stretchpert in the General forum
  • Fri, Aug 7 2009 10:44 AM In reply to

    Re: Paying off payday loans ....

    Well, I am not one to kick a person when their down.  You probably did it out of necessity and so as long as you are working on paying them off, that's the most important thing here. Stay strong and pay them off as quicky as possible.

    Good luck,

    Shawn

    You control your money. Don't let your money control you!
  • Fri, Aug 7 2009 12:10 PM In reply to

    Re: Paying off payday loans ....

    forginahead:
    Yes, I admit it. I was dumb - taking out payday loans (total of three) because I was too prideful to ask anyone else for help. This  is currently the major budget-breaker for me.

    A few years ago before I took over the budget in full dh and I had split the bills with him giving me 3/4 of his ft check for most of the bills with him keeping the other 1/4 + all of his pt check for the rest of the bills. I'm the more frugal of the two of us so sticking to my budget and paying off the bills wasn't a big deal for me I even managed to stick a little aside for emergancies with my bills we were no longer 1 minor problem ( dh getting sick with no more pd sick days) away from a disater. Dh refused for most of the relationship to handle his money even semi-responsibly he had a money allergy where as soon as he had it he had to get rid of it. At one point he ended up with a judgement and the lawyers threating to go after his assests (thankfully it wasn't a joint debt or the house would've had a lein on it). To get out of this situation dh took out a couple paydays loan but never paid the lawyers (darned money allergy flare up). The lawyers seized the account that his pay check was directly deposited into netting 2 wks pay before he was able to switch off of direct deposit the account was later frozen so no money in until the lawyer was paid including for those payday loans weren't getting paid off either. That spring he took some income tax money and paid the attorney through his (ours) attorney once the account was released the bank hit him with bank fees and the account was closed out. 

    During the months the account was suspended the payday loan companies called the house and called his job demanding their payment he'd offer to send them the money but they were only inetersted in directly withdrawing the money from a bank account. There was only 1 bank account at the time, mine, and the only way people get into my account is if I send them a check. I refuse to do a direct withdrawl on anything cause I'm always paranoid that someone will take everything out when they were only supposed to take a few dollars. The companies were told sorry either a mailing address or no money they swore they didn't have a mailing address at which point dh refurred them to his attorney who they called and tried to get his bank information out of, you can guess his response. 

    One morning when df was hospitalized and I was his health care proxy they called threatened to hold the line till they called dh's boss even though they know he's not allowed personal calls (from previous collection calls) and that call could get him fired. Unfortunately for them I have a copy of the FTC's fair debt collection poloicy that I refurred to with some of his less than reasonable bill collectors. They didn't realize that I know it's illegal for them to contact his employer, to refuse to deal with an assigned 3rd party (the attorney) and threaten to tie up the line when there is a medical situation. I told them that they swore they had contacted dh's work and ended the call. I called and check with his boss (no such call was recieved) then called the FTC where I filed a complaint, the FTC suggested that I follow throughwith my state attorney general. The state AG's office informed me that in NY payday loans are considered on the same level as a loan shark and legislation is being discussed to to pass laws for the protection of state residents. I also did a quick google on the companies (US Fast Cash & United Cash Loans) there is a list a mile long of complaints from people who did like you and tried to pay back the loan only to have the company take out more than what they were owed then not refund the overage. I also checked with bbb.org and discovered the compainies that had no mailing address not only had one but both companies were in the same building on the same floor and in neighborning suites. A few moths after I filed the complaint with the AG the response came back that they had choosen to write dh's account off years ago so they had no idea what we were complaing about. The interesting thing is that after I filed the complaint the calls kept coming till the state AG contacted them then suddenly they stopped. The funny thing is dh's attorney is still holding the money for them should one of the companies wish to contact him and provide him with a mailing address to send the payment to (like dh requested), dh has gotten better with money and didn't want to stiff them but just needed a mailing address.

    forginahead:
    Any ideas? suggestions? kicks in the butt? All are welcome. Tongue Tied

    Advice: Check with your state AG & FTC there maybe laws to protect you from getting over charged in interest or stop them from taking unreasonable steps to collect the money like calling you at work or your friends and neighbors.

    Suggestions: Check with the BBB and see what information they have about the company you did business are there a lot of complaints about them? Google their name and see what you learn the company might be known for taking liberties with other peoples accounts. 

    Kicks in the butt: Sorry I'm not finished kicking dh's yet.

     

    thrift is a sign of intelligence, any fool can spend money


    A merry heart does good like a medicine; but a broken spirit drieth the bones. Proverbs 17 verse 22
  • Fri, Aug 7 2009 2:20 PM In reply to

    Re: Paying off payday loans ....

    Sometimes we (and I mean me, too) have to make the mistake and work our way out of it to insure we don't fall for the same situation. You'll get through this, and it does seem as if you are darned determined not to do this again. Just hold on tight and you WILL get through this and will probably feel a big shift in your relationship with money. (speaking from experience, lol) . Payday loans are terrible traps for those who are the least able to deal with it. Do you have a bank account? Does your bank make loans to its account holders? We needed $1000 to pay our taxes last year and yes, I felt very stupid that I didn't have the money, so we contacted the credit union we belong to and had the loan money in 24 hours. The interest was very low and I was able to pay it off way ahead of schedule by transferring money whenever I could from our checking account to the loan. It was a lifesaver, really. Maybe looking for another way to get a loan quickly in case of an emergency would be a positive step you can take (instead of beating yourself up Smile )

  • Sat, Aug 8 2009 8:42 AM In reply to

    Re: Paying off payday loans ....

    Thank you for the support and comments, everyone.

    It's just very frustrating to me, to get caught up in stuff like this (although I had to do it, to keep from being evicted). The intellectual side says, Payday loans are BAD. The emotional side says, You can work harder to pay 'em off -- just do what you need to do! GRRR

    (I'm not naturally a patient person, and am trying to work on that. I know developing money-management skills will take some time .... but at the same time, part of my mind is saying I should know this already.)

    ~~ Kathy ~~
    "Credit buying is much like being drunk. The buzz happens immediately, and it gives you a lift. The hangover comes the day after."
  • Sat, Aug 8 2009 11:55 AM In reply to

    Re: Paying off payday loans ....

    Kathy,

    Now what you must do is move on.  No since is reliving this situation.  You have learned from it and now know that it can be avoided next time with proper planning and savings in advance.

    Suerte (Good luck),

    Shawn

    You control your money. Don't let your money control you!
  • Tue, Aug 11 2009 4:13 PM In reply to

    Re: Paying off payday loans ....

    Thank you, all, for the virtual "shaking." LOL Most days I view these frugal steps as a positive thing that will lead to a better life ... but occasionally my natural pessimism runs away with itself. Embarrassed

    And another success! I contacted the 2 other payday-loan companies I have loans with; one is willing to do a payment plan of four installments. That will help things immensely (both with the budget and future planning)! (The other one is not ... but I will deal with it.)

    ~~ Kathy ~~
    "Credit buying is much like being drunk. The buzz happens immediately, and it gives you a lift. The hangover comes the day after."
  • Thu, Sep 10 2009 10:28 PM In reply to

    • ACER9103
    • Not Ranked
    • Joined on Fri, Sep 11 2009
    • Posts 1

    Re: Paying off payday loans ....

     You know you are definitely nt the only one, I too got into a payday loan  mess, only with like 6 pay day loan companies. I was drowning, and fast, What I did find out, unfortunately too late, was that three of the 6 were companies that were lending illegally. yes, they were out of the country companies that contacted me and I closed my account and they tried calling me a few times, and then stopped. the times that they contacted me they tried nearly threatening me, and I just stopped picking up, it has been over a year and I have heard nothing from them, and nothing has gone on my credit. It turns out that they call people who do onling payday information requests which is what I did, and they illegally lend money at outragous fees and if for example the customer stops paying they have to try and scare them into paying, because they cannot collect any other way. it is illegal what they are doing, and they have no other means to collect. I am not saying this is the same for you, but you may want to look into it. I am also not suggesting that you take out loans and don't pay back, when I discovered this information I had already paid back the measley amount they lended me times three. Also in order for me to get out of the loans that were legal, that I would have to pay back I simply closed my account in between the 2 week grace period I had and suffered with their harrassing calls, and once I got the first letter that stated it would go to a collection account I called the collection agency and set up affordable arrangements, for example: paying a flat amount of $75-100 monthly through money order or prepaid visa, not through my new account, as long as you stick to the arrangements than they do not report to any credit agency. Now keep in mind it took almost thirty days before I received my first collection company letter, which allowed me some time to put aside a little bit of money to start the payment arrangement.

     

    This is just what I did and I do not have any of the pay day loans on my credit, so it is worth a shot. Regarding the legal point of the companies I would go to the paper work or websites, and read all the fine print, also trying looking up payday loan forum sites. they are out there, this is where I found a great deal of information on payday loan companies and whether or not they are legite.

     

    Good luck! hope this helps!!

    ACER9103

    Deltona, FL

  • Fri, Sep 11 2009 8:26 AM In reply to

    Re: Paying off payday loans ....

    About six years ago I had a job offer from a place called check into cash, wasn't sure what the company was, so I went ot the interview. When the lady explained what kind of buisness it was, I told her I could not take a job ripping people off. That's all these payday loan people are most legal scam artist, why the government allows this I will never know. Don't be too hard on yourself every body gets into scraps, wether it's cc or payday loans same difference as far as I'm concerned. I hate to bring up cc's, but do you have any if so pay them off with them at least the interest is lower, what about family anyone can help you?

    I f the answer is no, call all of them and work out a reasonable payment plan. Other than that I don't know sorry.

    ROLL TIDE !!!!!!!!!!!!!!!
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