How do I get out of Pay Day loan hell?

Question

I have about 5 payday loans now...I know shame on me. I had to get more just to pay the other ones because of that high interest. Well to make a long story short. I dont have good enough credit to get a loan (already tried) dont have enough in debt to file bankruptcy. And I cannot work a second job because I am a single mom. Please someone give me some advise other than save money. That is impossible with all the interest. I need someone that has had this happen and knows how to think out of the box.
Please....
Thanks

Answer 1

You should have learned when you got the first or second one...but for some reason you thought a third, fourth and fifth would help--- but I know sometimes its easy to just get desperate.

All you can really do is open a new bank account and close the other one that they are trying to automatically take payments from. You're probably costing yourself hundreds in overdraft or NSF fees already-- and that could go towards paying down your debt. Call them when you do this and explain that you messed up big time and need to set up small payments-- or none at all. Negotiate for them to stop penalties and interest and suspend the amount that you will pay on. APR on those things is like 500+% so if they dont do this you might never get out.

Try negotiating first-- a couple of them might be nice and you can get them out of the way while the others huff and puff.

Yes, it can be considered fraud to close the account-- but its also considered fraud to take out loans you know you cant pay for. It rarely comes down to it though-- most payday places are considered predatory lenders and they know that the legal system doesn't have much sympathy for them.

Document all your phone calls and attempts to negotiate with time, date, person you talked to, etc, just in case.

Good Luck!!

Answer 2

I may be able to help.1) What is a pay day loan? 2) How much do you owe? 3) How much do you clear each pay day? 4) Do you have any equity? 5) Do you have a relative or friend that could help with a "loan", not a gift? 6) Have you looked into government assistance? 7) I know that with kids and no dad you're really having a tough time. You must do everything that you can to make your kids lives as secure as possible. That is priority #1. I am sorry to say that you will have to forego almost everyting you want to sacrifice for your children. And for God's sake, DO NOT get mixed up with another man like their father. Your life choices are part of your financial plan. Read, if you have the time, Dr. Laura Schlesinger's book, "10 Things Women go To Screw Up Their Lives" and "The Millionare Next Door". You have to stop making bad choices, start saving as early as you can and don't touch those savings. Godspeed and best wishes. : )>

Answer 3

When you get a loan to pay your bills you are not paying your bills. You are just adding more bills. You get a payday loan for 100 dollars to pay a bill for 100 dollars. But the payday loan charges you 10%. So what really happened was, for no reason at all, you just changed your bill for 100 dollars into a bill for 110 dollars + added stress to your life. You actually just went to someplace and said "Hey, can i give you 10 dollars for no reason at all?"

The way to get out of this is to cut costs. Instead of buying soda or bottled water, drink tap water. Instead of making chicken or steak one night eat top ramen. Use coupons too! Make a list of every penny you save, and use that extra money to pay off the loan. Turn your water heater off after every shower and just turn it on again 30 minutes or so before you shower to get the hot water. THAT alone will save you 50 bucks per month. Maybe forget about cable television & internet for a few months to save a few hundred dollars. If you have a house phone and a cell phone, get rid of one of them. I dont know your situation or what kind of luxuries you are using (Luxuries i mean cell phone, internet, cosmetics, premium sports package on TV) But you really have to sit down, for a good 2 hours and see what you are spending your money on. DONT say you know, because if you did, you would not be in this situation. Chance are you wont know off the top of your head but try to get a general idea, then over the next month write down every penny you spend on one peice of paper. You will be shocked at the end of the money what you spent money on. You will also be able to figure out what you dont need to spend money on.

I've been in debt, i know its horrible. And you are right about the second job. Even if you could work it, it would not matter because you just spend more and besides that, you child needs you. You really have to sit down and just figure out where the money goes, and cut things out.

Good luck
Peilthetraveler

Answer 4

May I recommend a classic paperback book that's in every bookstore in the world for under $10?

You sound like a sincere person and I think you'd benefit greatly from reading "The Richest Man in Babylon" by George S Clason.

Changed my financial life 20 years ago.

Fun short read that will make a real difference in your life. Good luck to you! Darryl :)

Answer 5

Well, I have never been in that particular situation, but I was in a situation that you spoke of with not wanting to leave my kids. I found a great career I do from home. I started part time, you could definately do it in your spare time, then quit your job once you got going on it. The company is really great and offers 401k, benefits and full training and support. Maybe it would work to get you out of the spot you're in. I would love to help. If you want details email me.

Answer 6

You need to go and see a financial counselor, they can help you with a budget and help you figure out where your money goes and how to spend wisely. You are in financial trouble if you are going and getting payday loans they are a trap and very hard to get out of. seeking some financial advice will help you. I have experience financial trouble in the past and seeking financial advice was the best thing I could do for me and my family. Financial planning and advice is not taught to us, we need to learn the skills.

Answer 7

Try the below company to comparison shop for a debt consolidation loan. Home ownership is not required, and lenders will work with you even if you have less-than-perfect credit

Answer 8

Get the loans you have now paid and get rid of you checking account. A title loan place had me for about 3 years. I'd pay it off, then get another one. Finally I gave my title to a friend and told him don't let me have it. That ended it for me. Hang in there and deal with whats in front of yo know WITHOUT adding to it. yes, you'll have to work miracles with your budget, but you CAN do it.