Payday Loan Help

Payday Loan Help | CitrusNorth

Which payday loan is best?

A good payday loan is not possible. A payday loan counselor can help you establish a budget and keep track of your finances so that you don’t need to use payday loan companies.

Predatory lenders are often considered payday loan companies. Some states have even outlawed them. Pew Research estimates that an average borrower pays $520 in fees for a $375 loan. Payday loans have an average interest rate of 391%. This is ten times the amount you would pay on any personal or credit card.

How to get out of payday loans

Learn about payday loans before you apply for one. Many people get stuck in this cycle because they don’t know how it works or how much it costs. Don’t panic if you have fallen for the payday loan trap. Here are some ways to get out of the payday loan trap and move towards financial independence.

Look for alternatives to payday loans

Alternatives to Payday Loans. You can use one of these to pay off your existing payday loan. Don’t fall for it!

  • The Earnin app allows you to get a $100 daily advance on your paycheck without paying any fees or traps associated with payday loans. This advance can be used to pay off your payday loans, and you will not be charged any fees. There are some limitations.
  • Personal loans allow you to borrow a more significant amount with a fixed monthly repayment. This could be a better option to help you get ahead in your money matters while agreeing to a reasonable monthly payment that you can afford for a few years.
  • Consolidated debt loans allow you to take out a loan to pay off your payday loan debt and any other debts you may owe. You only have one account and one payment to manage and almost always at a lower rate than your payday loan. Consolidation loans allow you to spread the amount you owe over a more extended period, making you budget.
  • OppLoans is a popular alternative for personal loans and payday loans. They do not look at your credit like other personal loan options. They approve you quickly and can lend you more than payday loans with no fees. Their fees are usually higher than traditional bank personal loans.
  • If you have a credit card, it may be an option. Because they have lower interest rates than payday loan loans, they are easier to repay. You might consider a balance transfer credit card if you have existing credit card debt. This allows you to transfer your balance from another credit card without paying interest for a set amount.

Request an extended payment plan

You may be currently stuck with a payday loan that you cannot pay back on schedule. Find out if your state has requirements for payday lenders to work with consumers in extended payments.

These plans allow you to make monthly payments on the loan, rather than taking out another costly payday loan that you might not be able to pay back in two weeks.

The National Conference of State Legislatures has a list of state laws that govern payday lenders. This resource can be used to determine if an extended payment plan might be an option.

Participate in Debt Management Planning Processes

If you aren’t sure what to do or have more than one payday loan problem, debt management planning may be for you. This allows you to connect with a professional organization that will work with you and your creditor. A debt counselor can help you establish a budget and keep track of your finances so that you don’t need to use payday loan companies.

How to stop paying payday loans legal

Payday loans are not something you can stop paying. These are legal debts, and the payday lender may report any negative items to your credit report, send a collection notice, or even sue you.

Payday lenders often require you to sign an agreement that the payment will be drawn from your bank account. They will take the money if you fail to make a payment. This can make you liable for additional expenses such as NSF and overdraft charges.

There are several legal options that you can use to help you move forward after exhausting all other options.

Filing for bankruptcy

You may stop paying your payday loans legally via bankruptcy procedures if you cannot make your payments. An automatic stay is put in place when you file a bankruptcy petition. This means that any creditor listed on your bankruptcy petition must stop collecting.

Whether your Chapter 7 bankruptcy is filed or Chapter 13, you might need to make debt payments through the trustee. Chapter 13 bankruptcy sees the trustee pay priority debts like mortgages, auto loans, and taxes. The trustee then makes some payments on nonpriority loans, such as payday loans or credit cards.

If you file bankruptcy, the payday lender might receive money. Once your bankruptcy is over, the payday lender no longer owes you any money.

However, bankruptcy is not a good option. You don’t have to go bankrupt if you are not at that point yet.

Contact the State Regulators

Although state regulators won’t stop you from paying your payday loan, they may be an excellent next step if you cannot get the lender working with you. Contacting the state agency regulating payday lenders could help you if they refuse to work with you on a more extended payment plan.

To determine if a payday lender has violated any laws, you can use the National Conference of State Legislatures listing state laws. Payday loan lenders licensed by the state regulators might be able to help you negotiate a payment plan. They could also pursue unlicensed payday, loan lenders.

Make a complaint

If the payday lender refuses to work with your payment plan, you can file a formal complaint. This creates an official record. You can file complaints with your state regulators, as well as the Consumer Financial Protection Bureau. You may not have to pay, depending on the severity of your case.

Look for Better Options

Payday loan companies offer loans that are considered “desperate.”


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