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Debt Help Companies

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Betsalel Cohen
UpdatedDec 7, 2022
What debt help companies are there to help me pay off payday loans?

What debt help companies are there to help me pay off payday loans?

These small loans, also called "cash advance loans", "check advance loans", or "deferred deposit check loans", are a frequent pitfall for consumers. A fee anywhere from $15-$30 per $100 borrowed is charged for an average loan of $300. With rates so high and the term of the loan so short, there's no wonder that a very high percentage of these loans are rolled over by the borrower again and again so that the accumulated fees equal an effective annualized interest rate of 390% to 780% APR depending on the number of times the principal is rolled over.

If you do want to find a debt help company, I highly suggest that you apply to be matched with Bills.com's list of preferred debt help providers, by clicking here: Free Debt Relief Savings Quote

Unfortunately, however, most debt resolution companies cannot assist consumers with payday loans. Because of the high interest rates and fees associated with these loans, these accounts grow so quickly that debt resolution companies are unable to resolve them. A credit counseling agency may be able to assist you by providing budgeting advice, but generally payday loans cannot be entered into a debt management plan. Debt settlement firms generally cannot settle with payday lenders because these debts grow too quickly for the firms to be able to settle at a reasonable rate.

Thankfully, there are 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 Web site 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.

If you do not live in one of the states whose payday loan regulations favor consumers, the best solution would be for you to borrow the funds needed to repay these loans from a conventional lender or a family member or friend. Converting your payday loans to a conventional loan should allow you to repay the loans within a reasonable time frame and at a reasonable interest rate. If you cannot borrow the funds to repay the payday loans, you may want to make a payment each month to pay down the balances. In some states, the interest on the loans will prevent you from effectively repaying the debts in monthly installments; if you find that to be the case, you should contact the payday lender to try to work out repayment terms that will work with your budget. Hopefully, one of these options will work out for you so these loans do not go into default.

Bills.com offers a wealth of information available at the Bills.com Payday loan information page.

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

Struggling with debt?

Debt is used to buy a home, pay for bills, buy a car, or pay for a college education. According to the NY Federal Reserve total household debt as of Q2 2022 was $16.15 trillion. Auto loan debt was $1.50 trillion and credit card was $0.89 trillion.

According to data gathered by Urban.org from a sample of credit reports, about 26% of people in the US have some kind of debt in collections. The median debt in collections is $1,739. Student loans and auto loans are common types of debt. Of people holding student debt, approximately 8% had student loans in collections. The national Auto/Retail debt delinquency rate was 4%.

The amount of debt and debt in collections vary by state. For example, in New Jersey, 22% have any kind of debt in collections and the median debt in collections is $1273. Medical debt is common and 11% have that in collections. The median medical debt in collections is $472.

To maintain an excellent credit score it is vital to make timely payments. However, there are many circumstances that lead to late payments or debt in collections. The good news is that there are a lot of ways to deal with debt including debt consolidation and debt relief solutions.

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3 Comments

DDan Ware, Oct, 2010
Very useful answer! In my experience, pay day loans are good for short term money management, but can be deadly for long term financial stability. Found a very useful Payday Loan aggregation site that gives ratings for the main UK payday lenders and explains your rights if you fall in to difficulty paying the loans
BBing, Jun, 2010
Thanks for this useful answer.
DDebt Free Seattle, Jun, 2010
I wish you the best of luck in repaying these payday loan A very smart and diplomatic answer. It's really appreciable and general.sophia