I have gotten in over my head.Started out with one loan for an emergency..Could'nt pay it so took another loan to pay it, then another to pay it.Now I am trapped in 4 loans. Paying $76 each every two weeks to extend it (them) for another two weeks. Over $300 each payday. What will happen to me if I close my bank account? Will I go to jail? I am so scared, but am about 30 minutes away from being homeless because of this mess. This last payday, I went without any food for two weeks, living off of what my co-workers didnt eat from thier lunch. This is pitiful..I could not even buy myself something off of the dollar menu.....Can anyone tell me if I will go to jail. I am 50 years old and have never ever been in any trouble...I am in such a deserate state over all this mess.
2007-01-05 14:17:09 · 13 answers · asked by Sherry N 1 in Business & Finance ➔ Personal Finance
You don't have to worry about going to jail. If you don't willingly give them money, they will get a court order against you and may garnish your wages, collect tax refunds, etc.
Either speak with one of those credit places that help bargin your loans down to no interest. If you do this they know you are serious and might declare bankruptcy. In certain instances if you declare bankruptcy, they might not get any money.
Or else speak with a bankruptcy lawyer. They will let you know your rights and how they can help you. If you speak with them you are not obligated to use their services, but the information is very helpful.
2007-01-05 14:43:12 · answer #1 · answered by sorcergeek 4 · 0⤊ 0⤋
You signed a contract so the answers to how the payloan loan center pursues action should be spelled out on that contract. I don't think it's wise to close your account because that is the same as writing a bad check which could be considered a criminal offense. I am not trying to scare you. The odds are you won't end up in jail but could end up in court and only add to your debt. Talk to a consumer credit counseling service for FREE advice before doing anything on your own. The website below is to a non profit organization that regulates the legitimate consumer credit counseling agencies in your area. Click to the "take the first step" button for an organization near you. Surely they have run into your situation a number of times because those payday loan places are all over ... charging 400% interest and getting away with it. It's time for professional help to get out of the trap but being a legal contract, you need legal advice:
2007-01-05 14:31:26 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You will not go to jail. It sounds like you cant pay off this particular bill because you were desperate for cash ( and they knew it ) and now they're pounding you with high interest loans. Paying your rent and buying food to live on is also considered paying your bills. Put this as your main objective for obvious reasons. Then make a serious effort to work out these other bills with the banks that gave you the loans. Worse case scenario is that you will be turned over to a collection agency and this will hurt your credit. Depending on the amount you owe the bank may determine it worth taking you to civil court. ( wage garnishment,settlement) but definitely no jail time.
2007-01-05 15:01:31 · answer #3 · answered by Anonymous · 0⤊ 0⤋
There are ways out.
I've heard that in certain cases, the loans they extend aren't even legal because of the giant interest rates they ask for, and so if you just don't pay and they try to take you to court they get nowhere.
You can also try going to your bank and explaining the situation to them and tell them that you need a $1500 loan; and because you are paying essentially $600 in interest per month (assuming you get two paychecks/month) you will pay off the loan in 6 months or less. If you get someone with a heart they will help you out. You may need to get the waterworks going at the bank though.
I think it is your best shot though.
Alternatively, somewhere between the two, is to just let three of them bounce, and use the money you save in reborrowing to pay them off one at a time, every two weeks. If it takes you 6 or 8 weeks to pay them all off, it'll all probably be taken care of long before they can actually go ahead with noticing the checks bounced, trying to get ahold of you, being told to wait a weeks, etc, all the way to trying to sue you. I don't really advise this one too much though, but it definitely beats the first option.
You could also try getting a credit card with a 1500-2000 limit with cash advance abilities and paying them all off and then getting your name put on each of the payday loan company's do-not-lend lists for your own sake. Even if you're paying 25% anually interest on the credit card, it beats what you're paying now, which is probably in the thousands of %.
Swallow your pride and beg a family member to lend you the money and PROMISE, swear on your life that you will repay them with some extra within 3 months. THe money you save on loan forwarding will more than cover it in 2 months anyways.
Your last option is to just declare bankrupcy. If this is a problem you're encountering, then it probably means your financial situation with loans outside of this isn't in the greatest shape either. I doubt you want to do this, but you may have to consider it.
Good luck.
2007-01-05 14:42:10 · answer #4 · answered by Dethruhate 5 · 1⤊ 0⤋
It is really hard to tell exactly what will happen to you . The state you live is important since their are laws in each state concerning debt are different. There is no debtor prison. They may try to take you top court, so you show up and talk to the judge. The very worst case is they could garnish ( again depending on the state you live) and then they are only allowed to garnish a certain amount. If you email the state you live in then tomorrow I will call a negotiator that works for us and ask him and then email you back a reply. Please sleep well tonight and don't worry so much over this. It is not that big of a deal I see this stuff everyday. Its extremely stressful but not as bad as you feel it is.
Kourtnie D
E.D.A. Group
2007-01-05 15:07:56 · answer #5 · answered by Kourtnie D 4 · 2⤊ 0⤋
A person shouldn't go without food. See about government help.
You may qualify. Get a second job and pay this off. Take care of yourself. Take some action and clean up this mess. You can do it. You're in control. You'll feel a thousand times better once you do. Luck!
2007-01-06 06:49:21 · answer #6 · answered by Big R 6 · 0⤊ 0⤋
Go to your banker and see if you can get a personal loan to pay off the other four. This should result in a lower loan payment. Then don't borrow anything again until it is all paid back.
2007-01-05 14:21:39 · answer #7 · answered by kny390 6 · 0⤊ 0⤋
similar thing happened to an ex girl friend ... they took her to court over the money.... they could have claimed or charged her with knowingly writing bad checks but they did not. check your contract closely.
These payday loan places should be outlawed... they are a never ending circle of doom. Good luck
2007-01-05 14:21:19 · answer #8 · answered by Lar 2 · 0⤊ 0⤋
I know it's embarrassing to have to ask people for money but can you borrow money. My friend was in a similar situation and I made her borrow money from me to get out of it. If you don't want to ask a friend or relative you might try local agencies in your area. I know it's not a fun thing to do but that's what they are there for. You could volunteer to repay there good will.
2007-01-05 16:48:24 · answer #9 · answered by cali_23_05 2 · 0⤊ 0⤋
I've been there. It's unlikely that you'll go to jail. I hope your situation gets better. Have you tried talking to a credit counselor? Seriously they may be able to help. ((((HUGS)))))
2007-01-05 14:22:44 · answer #10 · answered by Anonymous · 0⤊ 0⤋