Payday loan default advice - The Bills.com Blog

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Payday loan default advice

Question: I defaulted on a payday loan and i am trying to arrange for payments but they refuse to accept less then full balance what can I do?

Answer: First of all, you are not alone. With $13 Trillion out there of debt, we're just about all depressed with bills. The challenge is to take charge of the situation and come up with a solid game-plan, especially since thePay Day Loan cycle is something that many Americans get caught up in.

You may be in luck. There are eight states whose payday loan regulating statute requires lenders to set up an installment repayment plan if an account reaches the maximum number of rollovers allowed by law and the debtor declares that he/she is unable to pay the balance due. Check out the payday loan information from the Consumer Federation of America at http://www.paydayloaninfo.org where you will be able to read all about these loans and the various state attempts to regulate them. Follow the ?state information?

link to find out the specific regulations for payday lenders in your state, and if you live in one of the eight states requiring installment payments. If your state does require repayment plans, and the lender still won?t accept payments, call your state regulator of payday loans, usually an assistant Attorney General, and complain. You should get the results you want after the Attorney General?s office becomes involved.

If you are not in one of those states, you may want to consider simply making payments to the lender anyway to pay down the balance of the loan over time. In most states, the rollover limit will soon be reached, and

the interest rate the lender can charge will be capped by state law. If the lender will not accept your payments, simply put what you can afford aside until you have enough money to either payoff the loan or to offer a settlement. Read up on the regulations in your state to find the best strategy for your situation.

If you need other debt help, please contact a counselor - we have several online at: https://www.bills.com/debthelp/debt/

We hope that this helped you to Find, Learn, and Save!

Best,
Bill
www.bills.com

Also, make sure to get a free financial health check-up with Bills IQ!

User Comments

1. Posted by Melanie Cheek on Tuesday 30th October 2007 09:00

Do you help with pay day loans?

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Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!

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