How can you escape from the grasp of a payday loan?

How can you escape from the grasp of a payday loan?

Scenario

Hi! I am Steve. I am in a deep financial crisis. I live in California. I took out payday loan. As much as my knowledge goes, I know that payday loans are legal in California. I borrowed $500. Currently, I am paying $250 per month on the loan.

I am thinking of taking the help of a debt counseling service to get some help with the online payday advance loan. If the amount can be reduced or any sort of payment arrangement can be done. I think I’ll benefit if I pay back early.

I will be paying much more than the amount I borrowed $500.

How much they can charge on online payday loans?

Solution

Hi Steve!

Greetings from our team.

I’ve read your problem thoroughly. Sad to see you’re going through a financial crisis after taking out a payday loan. Hope you have taken out a legal payday loan!

I understand your problem that you are trying to cling some help from wherever you can.

You can compare your current situation with a war-time crisis.

Let’s have a look at your probable financial scenario.

The payday loan wants to create a setback in your life.

It is trying to destroy you financially. You have not mentioned the payday loan interest rate.

That’s why you are saying the total payable amount will be much greater than your borrowed amount of $500.

In war, the enemy always attempts to make a surprise attack! The payday loan has the same kind of nature.

You won’t know from where a hidden charge may arise to give you a shock! You cannot calculate properly as you don’t know what your ultimate payment will be.

Here are the answers to some of your questions that you might be looking for.

So, where can I find a solution?

Wait for a second! The protector only appears whenever the crisis deepens!

The debt counseling service is your protector here. It will come as the savior to protect you from the ballooning debt amount that you’re trying to get rid of.

How the debt counseling service is going to rescue me?

The debt counseling service has several arms to save you from the clutch of the payday lender!

Can you tell me in detail about the helping hand?

  1. Your debt counselor may offer you a payday loan debt consolidation program.
  2. You can create your personalized plan under the payday debt consolidation program to get rid of the online payday advance loan.
  3. If you enroll yourself in the payday debt consolidation program you can skip paying off the astounding Annual Percentage Rate.
  4. The meaning is clear. Your interest rate may reduce drastically. You can reap the benefits when some dollars will be saved into your bank account.
  5. Even the prime clause of payday debt, paycheck to paycheck debt repayment will be off. You may get time up to two years to pay off your loan but the interest rate will be much reduced from the previous one.

What are the benefits I am going to get after enrolling in a debt consolidation program?

If you ask me, I will tell you to consider the debt consolidation program for repaying the online payday advance loan. Take a look at the benefits.

A new monthly payment plan:

Till now, you are used to repaying the debt with an astronomical interest rate. After your enrollment in the debt consolidation program, the specialists will negotiate with your creditors for a significant cut in the interest rate.

Most probably, your monthly payment will be lower than $250 that you’re paying now.

Pay the money without fearing any hidden clause:

The payday loan has a different villainous name! Some people call it ‘bad debt’, few others call it ‘notorious debt!’

Hidden charges that may be involved with payday loans are the main reason behind these names. The monthly payment of payday loans takes a giant form due to these hidden charges.

The result is the borrowers are punished with late fees and fines.

When you opt for a payday debt consolidation program, the experts will thoroughly scrutinize on behalf of you on how to make your debt repayment free from hidden charges, late fees, and penalties.

Live life without feeling any kind of stress:

It is difficult for a payday loan borrower to believe a payday  lender. The lenders are too much involved in pushing the consumers with hidden charges. It makes the borrower stressed about where and when a charge may pop up suddenly.

If you don’t make the payment according to the wish of the lender, you may start getting calls day and night from them about your due payment.

Take help from your debt consolidators and let them handle the matter on behalf of you.

You can lead a stress-free and peaceful life just by making a single payment to the consolidation company every month. Every other thing will be handled by the company.

One thing I would like to add in this respect. If your financial situation doesn’t permit you to repay the payday loan balance in full, you can opt to settle the loan. In this regard, you’d have to enroll in a pdl settlement program. The debt counselors will be able to guide you better.

How much do I have to pay for obtaining the service from debt counsellors?

Generally, nobody discloses their consolidation or settlement fees online.

I can give you a rough calculation only. They usually charge a 15% to 25% on average of your debt amount $500 they are going to consolidate or settle. The fees generally vary from one debt relief company to another

Learn about ACH Factor – A way to stop your payday lender debiting amount from your bank.

Until you take help from a suitable debt relief organization, you can stop the payday loan lender from acquiring your money automatically. You have to revoke your ACH Authorization.  

You may have permitted the payday lender before to debit your money every month from your bank account.

Now, you’d have to revoke the ACH authorization if you think you will stop your lender from taking out any further amount from your bank.

 

You can revoke ACH authorization in this way:

1. Call your payday lender or write to them

The first segment is called ‘revoking authorization’. You will inform the company that you are withdrawing the permit to acquire your money as per their will.

2. Write the same type of letter addressing the bank now

Now, write a letter to your respective bank. Tell them you have  revoked your money withdrawal permission from the payday lenders.

3. You may ask your bank to start ‘Stop Payment Order’

It is not necessary to inform your payday lender about revoking ACH authorization. You may give a ‘Stop Payment’ order to your respective bank.

You have to follow some rules regarding it.

  1. You should inform the bank about your ‘stop payment decision’ 3 business days prior to the payment date.
  2. You may give them an oral confirmation primarily but your bank may ask to give them a written letter about your ‘stop payment’ decision.

4. The US law will help you if your money is still debiting from your bank account

You will get your money back if it is withdrawn in an unauthorized way from the bank.

You may take help from State regulators or the State attorney general to solve the financial dispute.

One point must be remembered. Revoking ACH does not mean you have to stop paying payday loans or your loan is cancelled.

It just means the payday lenders cannot make any online debit from your bank further.

That’s all. Feel free to contact us if required, we will help you as much as we can.

Good luck!