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tinklebell1234 · Joined: 20 Apr 2010 Posts: 1 1.35 Dollars($)

i'm having some issues cause for one it's a recession, and i have 2,000.00 in payday loans that i can't pay back, because i'm jobless and sleeping in my car, but they are threating me, and stating that they are attorney's and that they are going to come after me, i have a 10yr old daughter, and i'm trying to get my life together, do you think i should file a chapter 7, and try to start my life, and credit over? please help

savior70 · Posted: Thu Apr 22, 2010 2:40 am Post subject:

Hi tinklebell,

I understand how much difficulty you are facing in this time of recession. But the market is turning around and I hope you will soon find a job.

Most of the payday loan companies are illegal. So, first check the state laws to find out if payday loans are legal in your state. If they are not, you just have to pay the principal amount and not the interest. Every state also has usury laws which limit the interest rate which lenders can charge.

If your financial condition permits, you can consolidate the payday loans to pay them off. If you take help from a debt consolidation company, you do not have to deal with the payday loan lenders. The consolidation company will take care of them.

However, consolidation is not possible, you may just leave the loans as they are. You cannot be put behind the bars for not paying the payday loans. If you really have no financial resource to pay them off, they will not come after your assets. Since you do not have any job they cannot garnish your wages. But you must not share your account information with them, otherwise they might freeze your account and take money out of it.

Well, you may also file bankruptcy Chapter 7 and wipe off all your unsecured debts.

Missy12342008 · Joined: 24 Feb 2009 Posts: 36 2.66 Dollars($)

I know how you feel although I don't owe that much money to the payday loan sharks I owe about $1000 for two of them and believe me I am not looking forward to answering my phone to talk to these attourneys as I am on unemployment, and can't afford to pay them off as much as I would like to I have 4 kids myself, and am barely making it in this recession although things are looking up my husband for instance has been able to work a lot of overtime at his job so that is a plus I guess. I filed bankruptcy almost 10 years ago, and it didn't really help my credit I don't think I had to go and dispute a lot of things that hadn't been removed from my credit report. I hope this helps and you should file if you feel thats the only way out.

jenkin7 · Posted: Fri Jun 18, 2010 10:45 pm Post subject:

Hi Missy,

Which state are you in? Payday loan lending is illegal in certain states. Have you checked whether it is illegal in your state? In case it is, you do not have to pay any interest on the two payday loans. You just need to repay the principal amount borrowed. So, if you've already paid off the principal, you need not pay them anything.

If the payday loans are legal, you might also consider consolidating them into a single monthly payment. You can go for a reputed consolidation company that charges low fees and get help in consolidating the loans to make your payments affordable.

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