My wife and I dont want to file bakrupsy but we cant afford to pay off our payday loans what should we do?
2007-08-06 09:59:03 · 5 answers · asked by rockerjon2005 2 in Business & Finance ➔ Personal Finance
Get another job...Don't get ANY MORE loans. Pay as much as you can and don't miss a payment. Even if you pay some, it's better than nothing. Never get a payday advance again...that is the worst thing anyone can do with their finances. Read Dave Ramsey's Total Money Makeover. Follow it and it will change your life financially.
2007-08-06 10:22:10 · answer #1 · answered by fashionbydesigners 2 · 0⤊ 0⤋
If you cannot pay, the payday firm will file a judgment against you for the amounts owed, plus interest until you DO pay them off. The interest rates charged by payday loan firms is downright horrendous, and those rates will continue until you pay what they want from you.
A judgment may be used in the future to obtain a writ of garnishment which the lender will use to force your employer to withhold some of your pay and send it to the lender.
Bankruptcy may be your only option at this stage. I recommend that you contact a qualified credit counseling service in your area for further guidance.
2007-08-06 10:10:34 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
Stop spending money you don't already have.
Move somewhere cheaper to live.
Get an extra job (or two, or three...)
Cut up any credit cards you have.
If you HONESTLY can't afford to pay of "payday" loans, even by selling stuff, then it's doubtful you can afford the fees to file bankruptcy anyway.
Sorry to be brutal, but the ONLY way to stay poor is to keep spending more than you are earning!
2007-08-06 10:06:39 · answer #3 · answered by Anonymous · 0⤊ 1⤋
If you have several high-interest loans/credit cards, you'd benefit from a consolidation loan, where you borrow a bunch of money at a low interest rate to pay off your higher interest loans. Then lower interest rate consolidation loan may be at a lower monthly payment that you can handle.
If worst comes to worse, you can always consider a smaller home or selling the vehicle and using public transit.
2007-08-06 13:38:48 · answer #4 · answered by epoulin 2 · 0⤊ 0⤋
Get second or third jobs. Pawn valuables. Have a yard sale. Collect aluminum cans. Mow lawns.
You've dug yourselves a deep hole. You have to find a way to produce more income. If you can't, then maybe you should file bankruptcy.
2007-08-06 10:04:03 · answer #5 · answered by bdancer222 7 · 1⤊ 0⤋