BILL'S ANSWER
You are right in being careful not to accept offers just from somebody who is trying to sell you a loan. Although I agree on what the lawyer has suggested (getting a loan to pay off these payday loans), I am doubtful of the possibility that you would be approved for a loan for $12000 given that your credit score is at 545 and you have a less than perfect payment history.
There are other options available for consumers who find themselves in trouble with payday loans. You can get out of this trap if you are a resident of one of the twelve states where this type of loan is illegal once the effective rate passes the usury cap in that state. Usury laws dictate the maximum interest that many lenders may legally charge. If the payday lenders follow their normal business model the loan will most assuredly pass the limit very early. New York State even has a criminal statute that sanctions the lender if the rate exceeds 25%. If you are in one of those states, the loan may be void, and you may be only liable for the principal amount borrowed. In addition, there are eight states whose payday loan regulating statutes require 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. Such a repayment plan may help you in paying off these loans.
You can find a summary of your state’s pay day loan statutes at www.paydayloaninfo.org a website developed by the Consumer Federation of America. If you go to the same site and click on consumer help, you will find a comprehensive discussion of the best strategies of how to cope with and get out of the payday loan trap.
A possible loan resource you may want to explore is www.Prosper.com, a site which puts private lenders in contact with private borrowers. A private lender may be more willing extend you a loan than a traditional bank. If none of these options will work for your situation, Bills.com offers a wealth of information regarding the various debt help options available to consumers. Please visit the debt help page for more information.
Bills.com also offers more information on the Payday Loan Information page, and has answered reader questions about payday loans in California, Florida, Illinois, Massachusetts, Missouri, Texas, and Virginia.
If you do not repay a payday loan, the payday loan company has several legal remedies, including wage garnishment, levy, and lien. See the Bills.com resource Collections Advice to learn more about the rights of creditors and debtors.
I wish you the best of luck in repaying these payday loans. I hope this information helps you Find. Learn. Save.
Best,
Bill
www.bills.com/
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