Pay Off Payday Loans
To pay off payday loans is no easy task because these loans are meant to keep the borrower in debt to the lender through built up rollover fees and high interest rates. Payday loans are at first easy to obtain because the lender doesn’t perform credit checks or ensure the borrower’s reliability to pay the loan back. Instead, the lender requests a proof of income source (a work pay stub, for example) and access to a bank account. This way, the lender can withdraw money from the account if the borrower doesn’t pay on time.
The following are steps to pay off payday loans:
Stop borrowing payday loans.
It makes sense because this helps to cut off the payday loan cycle. It takes about five months for a borrower to pay off payday loans because the loan rolls over after a 14 day period. This leads to increase in rollover fees and annual interest rates. Once you stop borrowing, look for alternative ways to pay them off, such as approaching a credit union for help, pawning off property or borrowing from friends and family.
Negotiate with your payday lender or let the debt go to collections. Speak with the payday lender about registering you for a program in which you can pay off payday loans and maybe get a lower interest rate. You may even consider allowing your payday loan to go into collections. This way, the debt is out of the lender’s hands. Your debt in a collector’s hands will allow you more control over payment within a certain period of time.
Settle your debt with a debt settlement company. Seek help with this from a bankruptcy attorney or a debt professional. To do this, get a free copy of your credit report from a national credit report agency like Experian, Equifax and TransUnion.
You don’t have to pay off payday loans by yourself. My Payday Loan Relief can help consolidate your debt by negotiating with lenders on your behalf. Get a Free Consultation today by filling out the form on this page.