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What you can do if you cannot pay payday loans

Mark Cappel
UpdatedOct 9, 2007
Key Takeaways:
  • Payday loans are a trap for many consumers.
  • Learn the tips and tactics to free yourself from payday loans.
  • offers state-specific advice for people with payday loans.

I have recently found myself taking out too many payday loans, is there anyway to get them to maybe skip a payment?

I have recently found myself taking out too many payday loans and cannot pay the minimum payments they are taking up my whole paycheck plus. is there anyway to get them to maybe skip a payment until i can pay down and pay my rent etc?

These small loans, often 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. You will have to contact your lender to see if they are open to making payment arrangements. Unfortunately, you will find that in most cases the lenders are just too inflexible.

You may be in luck in regard to your difficulty in repaying these loans. 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.

Check out the payday loan information from the Consumer Federation of America at 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 of whatever you can afford 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 each month until you have enough money to either pay off the loan or to offer a settlement. Read up on the regulations in your state to find the best strategy for your situation.

Editor’s note

Comments on this page are closed. See Payday Loans to learn how to handle payday loan collections. See the payday loan resources for California, Florida, Illinois, Massachusetts, Missouri, New York, Texas, and Virginia to learn more about payday loan laws in those states. 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 resource Collections Advice to learn more about the rights of creditors and debtors.

Hopefully, one of the strategies I have discussed above will help you resolve these payday loans, and help you Find. Learn Save.

Best of luck,



llittlefighter, Oct, 2010
This was a very interesting read with an abundanceof information within! Very good work by the author!Thank you for sharing this with us!