Payday loan debt settlement – How to get rid of payday loans legally
What is a payday loan debt settlement?
This is a debt relief process where you pay less to the payday lenders than you agreed to pay on your multiple payday loan. It helps you get out of payday loan debt fast and save money.
Table of Contents
- Payday loan debt settlement – How to get rid of payday loans legally
- What is a payday loan debt settlement?
- Can you settle a payday loan?
- Can a lawyer help with payday loans?
- How does the payday loan settlement process work?
- What are the pros and cons of payday loan settlement?
- How can I give you debt relief?
- What other services does my team offer?
- Why do people need help with payday loans?
- Why should you choose our law firm to get the best payday loan help?
- What steps should you take before getting payday loan debt relief?
- When should you disapprove a payday loan settlement offer?
- How can you choose the best payday loan settlement companies?
- What are the 3 effective ways to get rid of payday loans?
- What is the worst way to eliminate payday loan debt?
- Where should you report about a payday loan scam?
- Are payday loans legal?
- Why are the interest rates on multiple payday loans so high?
- Why should you avoid borrowing payday loans?
- What are the alternatives to payday loans?
- What happens when your payday loan debt goes to collections?
- Can payday loan lenders or debt collectors sue you?
- Can payday loans garnish your wages?
- Can you settle payday loans on your own?
- How long does an unpaid payday loan stay on the credit report?
Can you settle a payday loan?
Yes. You can choose a payday loan settlement with the payday lenders for as little as 50% and get out of debt within 2-4 years. Once you pay the agreed amount, creditors will update your account as ‘paid as settled' on your credit report.
Can a lawyer help with payday loans?
Yes. Attorneys know payday loan and debt relief laws and they are good negotiators. Lenders are scared of them as attorneys can file a lawsuit against them for breaking rules. Hence they settle payday loans quickly with attorneys.Back To Index
How does the payday loan settlement process work?
- You will work with my assistant. He will gather information on all of your debts.
- I will review your file and contact your payday loan companies. I will inform all of them they cannot harass you anymore.
- Most payday loan companies, once they know I am representing you, will settle the debt at favorable terms.
- I will have you work with my assistant to make payments to the payday loan company.
- You will be debt-free in three to four months.
What are the pros and cons of payday loan settlement?
Knowing the pros and cons of a payday loan debt settlement method is wise before using it as a payday loan debt relief option.
- The borrower may need to pay a reduced amount, thus save more.
- The borrower may avoid any late fees and charges.
- It comes without an upfront fee.
- The borrower can restrict collection calls.
- It gives you relief from financial stress/anxiety and a mental peace.
- The borrower may fall into a scam by not being careful.
- Unlike payday loan consolidation, settling legal payday loans may impact your credit score.
How can I give you debt relief?
- Lower your payoff amount
- Reduce or eliminate collection calls
- Eliminate late fees, advance fees, extra fees
- Stop automatic debits
- Avoid lawsuits
What other services does my team offer?Back To Index
Why do people need help with payday loans?
Payday loans have high APRs, which can go up to 500%. Only 14% of borrowers can pay off their payday loan debt, and others try to roll over or refinance their loans. 58% of borrowers can't even cover monthly expenses. To get out of this issue, payday loan borrowers require an effective solution such as payday loan debt relief.Back To Index
Why should you choose our law firm to get the best payday loan help?
- Our attorneys follow state and federal payday loan laws.
- Our secure system allows you to monitor your lender accounts closely.
- We know how to get payday loan companies off your back.
- We are confident in our work and offer a 100% refund if you are not satisfied.
- We offer a reasonable fee structure that won't interfere with your journey to financial freedom.
What steps should you take before getting payday loan debt relief?
Step 1: Know how much you owe:
Don't go into debt negotiation blind. Make a list of all your lenders, calculate your outstanding balance for each, and make a note of the interest rates. Then you'll be in a strong position to settle your payday loan debts.
Step 2: Check whether your lender is licensed in your state:
Most states require payday loan lenders to be licensed. Check your state's laws to make sure your lender is following them. If they're not licensed, you may be able to avoid paying them back the full amount you owe.
Step 3: Cancel ACH authorizations:
If you have authorized your lender to automatically withdraw payments directly from your bank account, cancel it. Without authorization, they can't withdraw payments unless you allow it, putting you in a stronger position when the time comes to negotiate. This also prevents lenders from emptying your account.Back To Index
When should you disapprove a payday loan settlement offer?
Being a borrower you may reject a payday loan settlement offer, when:
- The debt is invalid and not yours.
- The lender violates state laws of payday lending.
- The settlement company violates FTC laws.
- A written settlement agreement letter is missing.
- You cannot afford the new payoff amount.
How can you choose the best payday loan settlement companies?
- Check the settlement company's fee structure and see if it's affordable.
- Check if their business is accredited with the Better Business Bureau.
- Ask if you'll get a refund if they can't help you pay off your payday loan debt.
- Ask how they intend to provide you with payday loan relief.
- Find out if they have good industry experience.
- Find out how long they've been in business and what their success rate is when settling payday loans.
What are the 3 effective ways to get rid of payday loans?
1. Join a payday loan debt settlement program
The payday loan debt settlement company negotiates with your lenders to reduce your outstanding balance to an affordable amount while waiving late penalties and fees. It helps you get payday loan relief fast.
2. Enroll in a payday loan consolidation program
Payday loan debt consolidation companies offer monthly payment plans tailored to your income. Once your loans have been consolidated, you'll enjoy a lower interest rate and a single, affordable monthly payment. The greatest benefit of payday loan debt consolidation is it doesn't harm your credit scores.
3. Opt for a payday loan debt management plan
With this option, credit counselors will explain how to get out of payday loans legally. They'll negotiate separately with each of your lenders for lower interest rates to create an affordable monthly payment. Then, they'll make a personalized budget plan to keep you on track to eliminate payday loans.
Read the features of each program to find the best way to get real payday loan relief.Back To Index
What is the worst way to eliminate payday loan debt?
Try to avoid bankruptcy, because it will hurt your credit.Back To Index
Where should you report about a payday loan scam?
- The Consumer Financial Protection Bureau (CFPB)
- Your state's attorney general
- The Federal Trade Commission (FTC)
Are payday loans legal?
Payday loans aren't legal in every state, but that doesn't stop unscrupulous lenders from offering them. If you took out a loan from a lender operating illegally in your state, you might be able to settle your debt for much less than you realize. Have you explored the payday loan laws in your state? If not, do it now. It could save you a fortune.Back To Index
Why are the interest rates on multiple payday loans so high?
Due to the high-risk market in which payday lenders operate, interest rates on these loans are frequently very high.
Payday loans are short-term loans, given with no credit check, typically for amounts of $500 or less. These loans are intended to be repaid with the borrower's next paycheck. A Payday lender has a significant risk of default because these loans are designed to be repaid fast and are frequently given to borrowers with bad credit or few other financial options. They impose high-interest rates to mitigate this risk so that they may still profit even if specific borrowers cannot repay their loans.Back To Index
Why should you avoid borrowing payday loans?
Payday loans can create a costly and extended debt cycle of high-interest borrowing that exacerbates short-term financial needs. Meeting regular living expenses becomes challenging as borrowers struggle to repay their loans, forcing them to take out additional high-interest loans repeatedly and fall into the payday loan trap.
High fees and short repayment periods frequently prevent borrowers from making their timely payments, resulting in repeated rollovers or a new loan to pay off the previous ones. The CFPB reports that over 80% of payday loans are reborrowed, with nearly 25% being reborrowed nine times or more.
Consider this scenario - You experience an emergency and instantly borrow $300 from a payday lender with a repayment deadline of two weeks. However, as per the CFPB, you are charged $15 for every $100, resulting in a $45 fee for a $300 loan. This indicates an annual percentage rate (APR) of 400%. Higher fees in states with less regulation result in effective interest rates as high as 500% to 600%, according to data from the Center for Responsible Lending. In contrast, the average APR you might pay towards a credit card debt is currently around 16%.Back To Index
What are the alternatives to payday loans?
Get assistance from a credit counseling agency to create a budget and a repayment plan. A professional credit counselor may also negotiate with creditors on your behalf to reduce interest rates and fees.
You could borrow money by applying for a personal loan or debt consolidation loan from a financial bank, credit unions, or online lenders. Personal loans or debt consolidation loans typically have lower interest rates and longer repayment terms than payday loans.
Credit card cash advance
If you have a credit card, you may borrow a cash advance from it. Although cash advances typically have higher interest rates and fees than regular credit card purchases, they may still be better than payday loans.
Emergency assistance programs
Check with your local government or non-profit organizations to see if they offer emergency assistance programs to help you cover your expenses and manage unsecured debts.
Side hustles or part-time work
Consider taking on a temporary job or side hustle to earn extra income to help cover your expenses and pay off other unsecured debt burdens.
What happens when your payday loan debt goes to collections?
Typically, your lender will make payment collection attempts for approximately 60 days. If you cannot pay during this period, a third-party debt collection agency may step in to recover the loan amount and interest. Failure to pay the collection agency may result in legal action against you.Back To Index
Can payday loan lenders or debt collectors sue you?
Failure to repay your payday loan debt may result in a lawsuit by the lender or a debt collector to recover the outstanding amount. If the lawsuit is successful or you do not contest it, the court will issue an order or judgment stating the amount owed.Back To Index
Can payday loans garnish your wages?
A payday lender has the authority to garnish your wages if a court order is obtained through a lawsuit against you. Additional restrictions may limit the lender's ability to garnish your wages. However, it's crucial not to disregard any legal notices or orders, as failing to respond could result in the lender or debt collector obtaining a garnishment order against you.
Wage garnishment occurs when a portion of your wages is withheld by your employer to pay off your debts, while bank garnishment occurs when your bank or credit union receives a garnishment order and sets aside an amount as permitted by state law. Each state has specific procedures and exemptions for wage and bank garnishment. Most states allow wage garnishment, although a few do not allow it for this type of unsecured debt. Contact the state’s attorney general office to learn more about your state's policies. Federal law generally exempts certain benefits or payments from garnishment.Back To Index
Can you settle payday loans on your own?
It's tough to settle and get out of payday loan debt on your own due to the following reasons:
- Not every payday loan lender is legal. An experienced payday loan settlement company will be able to tell right away, potentially saving you thousands.
- Most people don't have the training or experience necessary to negotiate payday loan debt settlements successfully.
- Negotiations with lenders can be stressful and nerve-wracking.
- Laws on payday loans and collection efforts vary from state to state. If you don't know the laws well, you are unlikely to get the best result.
- Unless you've done this before, payday loan settlement companies have a much better track record than you.
How long does an unpaid payday loan stay on the credit report?
The length of time an unpaid payday loan debt stays on credit reports can vary depending on the credit reporting agency and the laws in the relevant state. Negative information, such as a missed payment or default on a payday loan, may be listed on the credit reports for up to seven long years. It's important to note that paying off a payday loan through debt consolidation method does not remove it from a report, but it does reflect positively on your credit history. A payday loan consolidation company might help you to pay off the payday loan debt entirely via affordable monthly payments, and assist you to keep your credit score intact.Back To Index
I've been working with Oak View for approximately three to four months now. Steve Lewis has so far exceeded my expectations with his negotiation skills. So I just wanted to thank both Steve and Oakview for their support and a job well done.See More ...
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