Page 1 of 2 12 LastLast
Results 1 to 8 of 16
  1. #1
    Deal GURU
    Join Date
    Mar 2007
    Posts
    4,567
    Downloads
    0
    Uploads
    0

    Default Help in Payday Loan Agony

    Hello Everyone,

    I have been a member of this group for a little while and have asked for help about a wedding bridal shower. (it went well by the way we did dinner and a "sexy" scavenger hunt)

    At the time I mentioned that we were in deep "dodo" financially. What I didn't realize at the time was my husband applied for payday loans. He received several of them. It has now caught up with us. We owe 2 payment on our house and car therefore are in fear of losing them. We are now $-900 in our bank account. When we get paid we will have to get another loan to pay for the bare essentials.

    My husband has realized I really need to be the one taking over the bills but I have no idea what to do...I need some directions. We have thought about opening another bank account and start over then pay our other bank little by little but we don't know if that is a wise move. There have been so many unwise choices regarding our $$, I don't want to do it again. I have read several people give wise advise on other topics so I'm hoping I am as blessed with some wise advise for my situation.

    We have no family to turn to that would or could help us. It is one reason we are where we are today. Any wisdom would be greatly appreciate. I am very frugal and would be better with the books but I don't even know where to start when we are this much in the red.

    Needless to say our Christmas looks bleak, well as far as gifts go. In truth even in the mist of this we are blessed we are healthy and love each other very much...and I am willing to walk through this with my husband. I love him dearly and he loves me...in this I know I am blessed. Plus we have 2 beautiful daughters whom we love and love us.


    Anyway if you have read this to it completion...I thank you for at least reading it. If you have any words of wisdom...I thank you in advance.

    Much Appreciation,
    Laurie
    ~*~*~*~*~*~*~*~*~*~*~*~*~*~*~
    All of my posts were transferred from
    the budget101 Discussion list
    ~*~*~*~*~*~*~*~*~*~*~*~*~**~*~

  2. #2
    Deal GURU
    Join Date
    Mar 2007
    Posts
    4,567
    Downloads
    0
    Uploads
    0

    Default

    Laurie, a lot might argue with me but Bankruptcy is something you should seriously look at... if nothing else, filling stops all actions against you and buys you some breathing room... talk to an attorney immediately! (and I know you will say you can't afford it...but with your next paycheck, you can make payments to a bankruptcy attorney, call around and price them...)

    been there, done that....was not as painful as I thought it would be ....and gave me a chance to start over

    alana
    ~*~*~*~*~*~*~*~*~*~*~*~*~*~*~
    All of my posts were transferred from
    the budget101 Discussion list
    ~*~*~*~*~*~*~*~*~*~*~*~*~**~*~

  3. #3
    Deal GURU
    Join Date
    Mar 2007
    Posts
    4,567
    Downloads
    0
    Uploads
    0

    Default

    First, don't sweat Christmas. Contact local agencies like Toys for
    Tots, and churches. Christmas will be taken care of, and it's a
    weight off your shoulders.

    Next, stop taking out pay day loans. You lose money doing this, and
    while it helps short term, two weeks later, your money is gone
    already, and you have to do it again. It's a vicious cycle that
    should be stopped. For basic needs, find food pantries, apply for
    help through the government (WIC if you have kids under 5, food
    stamps, utility help, etc). Next, contact Gas & Electric, and get
    placed on an assistance program if they have it. Also get your bills
    put on the plan where they remain the same monthly. If you live in a
    cold weather area, see what you need to do to be put on a "do not
    disconnect" program.

    Stop any and all extra's you might have, effective immidiatly-
    cable, dish network, cell phones, extra insurance (pare down to the
    barest of necessaries for insurance- plpd, higher deductables, etc),
    etc. Some of those things might be on a contract. For now, just put
    those bills at the bottom of the pile. The service will get
    disconnected until you pay, but if you do have anything like that,
    paying on them isn't your best financhial move right at this moment.

    You need to address basic needs first and foremost- shelter, heat,
    food, and water. Those are your only basic needs. A basic need is
    something that is essential to you staying alive. Those are the
    bills that must be addressed first and foremost. Heat can be
    addressed through the company as I stated above. Food can be
    addressed as I stated with food banks, and assistance. Water is free
    if you have a well. That leaves shelter.

    If you have to, borrow money from someone, but do not take out
    another pay day loan. Those things should be illegal. They are
    designed in such a way that if you take one out, you'll be taking
    them out to keep up because you basically spent your paycheck well
    before you got it, so another is needed to pay your bills, etc, etc.
    You are paying handomsly for the ability to get your paycheck before
    you get it from work.

    The ONLY way those loans work is if you are taking out a small
    amount, and you make enough money to cover it without effecting your
    bills. For instance, if you get a paycheck of $2,500, and you have
    $1,900 in bills, and you take the loan in an amount of $600 or less.
    That leaves you enough to pay the loan back, and still get bills
    paid.

    Unfortunatly, they target people like you who need a small break,
    and then get stuck in a vicious cycle.

    Bankruptcy was mentioned, but it's not neccesarily your best option.
    It would really depend on how far in debt you are outside of your
    bank account. I'd say if you are more than $10,000 in debt, and all
    of these places are knocking at your door demanding money NOW, then
    it might be something to consider.

    If this is a short term thing, where you guys are just starting to
    back up in money problems, then try other options first. Bankruptcy
    laws have changed in a way that you STILL owe money to these people
    after the fact. You don't get a clean slate- your credit rating is
    shot, and you still owe a portion of the money.

    The house where you are now you own, but are 2 payments back on the
    payment. Have you considered selling it, and trying to get into an
    income based housing? Many of them offer townhouses with 2-4
    bedrooms, and even a full basement. It might not be your own home,
    but it's better than losing the house outright. You might not even
    make money off the deal, but that's one payment that's gone, and
    your rent (if income based) would be significantly cheaper. If you
    DO make money off of it, I'd recommend paying off the cars, so that
    you knock those bills off, too.

    With car payments, quite honestly, I'd sell them. If you can't
    afford a car up front, then you are losing a LOT of money in
    interest, even if your interest rate is only 4%. Considerably more
    if your rate is 20%. Buy a couple of cheap cars that you can pay for
    up front. You might not be driving something brand new, but it's
    better for your finances, and you won't have to have full coverage
    insurance on them. No car payment, and a lower insurance payment.

    Consider selling items you own, as well. Extra furniture, electronic
    equipment, movies, etc, all can make you a bit of extra money to get
    back to a 0 balance on your bank account. If it's check writing that
    has caused you to get to a negative balance, stop writing checks.
    Use money orders. You can (and will) get sued for writing NSF checks
    (Non-sufficient Funds). The penalty varies from state to state, but
    can cause you a LOT of money you don't have. Just lock the check
    book up. Do the same if you have any credit cards.

    I hope at least something I wrote will come in handy.
    ~*~*~*~*~*~*~*~*~*~*~*~*~*~*~
    All of my posts were transferred from
    the budget101 Discussion list
    ~*~*~*~*~*~*~*~*~*~*~*~*~**~*~

  4. #4
    Deal GURU
    Join Date
    Mar 2007
    Posts
    4,567
    Downloads
    0
    Uploads
    0

    Default

    Hello Laurie,

    Paying back the other bank is going to have to happen. They will report the negative actions on your credit report.

    Rebuilding your credit score can take some time. I don't know how much it "rebuilds" every month, year, etc. I know that most important is paying your bills on time. That is a large percentage of the score and it is reporting by most companies immediately (if not sooner) if you are even an hour or two late.

    I have never gone the Payday Loan route, but I hear it is horrible.

    Herlean
    ~*~*~*~*~*~*~*~*~*~*~*~*~*~*~
    All of my posts were transferred from
    the budget101 Discussion list
    ~*~*~*~*~*~*~*~*~*~*~*~*~**~*~

  5. #5
    Deal GURU
    Join Date
    Mar 2007
    Posts
    4,567
    Downloads
    0
    Uploads
    0

    Default

    If you were current on everything, would you have extra money in your budget? If so, do you have any equity in your home that would allow you to take a small home equity loan out? Don't go crazy and get tons of money, but just enough to end payday loan nightmare and bring your bank account current? Or maybe go to one of those places like Citifinancial and American General will do signature loans as well but the rates are high - usually like a higher credit card.

    Have you talked to the mortgage company? Sometimes they can rework a loan and put some back payments to the end of the loan and bump the loan period out by those months.

    If all else fails, you can definitely try to switch banks and at least get control of your current incoming cash. You might have difficulties though as some banks report your NSF history so it would need to be done ASAP to avoid that.

    Good luck to you. Keep us posted - I'm sending a prayer your way.
    Monica
    ~*~*~*~*~*~*~*~*~*~*~*~*~*~*~
    All of my posts were transferred from
    the budget101 Discussion list
    ~*~*~*~*~*~*~*~*~*~*~*~*~**~*~

  6. #6
    Deal GURU
    Join Date
    Mar 2007
    Posts
    4,567
    Downloads
    0
    Uploads
    0

    Default

    There is always a way out of every mess, it just may take longer than we want it to and it may be a little more painful than we would like, but there is a way.

    I don't think you will be able to open a new account at another bank with a negative balance at your current bank. If you bail on your current bank you will have made it to where you won't be able to open another account anywhere. Banks have a system similar to credit cards where you are reported if you close an account (or abandon it) with a negative balance and a new bank won't do business with you (this happened to a friend of mine and his sister).

    Call the payday loan folks and explain the situation to them about your house and car and see if they will work with you. You need to make sure you have your "four walls" in place before you start paying anything else (shelter, food, utilities, the essentials). You should also call the mortgage and auto finance companies and see if you can work anything out with them to save your property. Worry about the payday loans after you have your home and car secure. Do you live in an area where there is good public transportation? If so can you sell your car? Remember they don't have debtors prison anymore, you will have to pay a ton in interest, but if you have your house you will at least have a place to live and raise your girls. Think of this as a lesson and that you will all make it though intact and happy.

    Good luck!!!
    ~*~*~*~*~*~*~*~*~*~*~*~*~*~*~
    All of my posts were transferred from
    the budget101 Discussion list
    ~*~*~*~*~*~*~*~*~*~*~*~*~**~*~

  7. #7
    Deal GURU
    Join Date
    Mar 2007
    Posts
    4,567
    Downloads
    0
    Uploads
    0

    Default

    Hello, sorry to hear about what is going on. We have had it rough off and on
    also. We lost our home to Wilma and had to move from broward to cocoa and my
    hubby had to try a different career for a while and that set us sooo far
    back and throw in the fact of our bills going up over 40% and then the 20%
    pay cut it killed us. He is now back on his original career but we are
    trying to catch up and it feels like a never ending struggle. I know that it
    does get better but it takes a LONG time and a lot of patience. I did a
    payday loan a couple of months ago because our electric was due to be cut
    off and I have 4 kids. What was $300 to start has now cost over $700 and we
    still owe $195. it was 51% interest and I had to pay interest and a certain
    amount of the principle every 2 weeks. Ouch!! I will not do that again. You
    can try to go to a credit union. I was able to get an account there at
    insight financial. They do pull a credit report but the other bank that I
    messed up with had not reported it as of that time so I got lucky. If you
    want to open that other account I would do it asap before they report it and
    you are stuck. If the calls from collectors get to bad, send them a cease
    and desist letter to a physical address so you get a signed receipt and if
    they contact you, they can be reported and fined for every call they do.
    There are sample letters on the internet. Just type in cease and desist
    letter and you would be amazed at how easy they are. You can even contact
    credit counseling places. The best one I have found is:
    http://www.cccscfl.com/company.htm .

    They seem really tough but it might be what you need to get back on your
    feet.



    As far as Christmas goes, I would call around to the local churches and ask
    if they have any type of toy give a way as well as local newspapers,
    schools, toys for tots and Salvation Army. They do have income restrictions
    a lot of the time but I know people that are so in debt that they go in and
    don't say anything about their spouse and just say that they are single
    parents with a low income. They show some kind of bill for proof of
    residency, normally everyone wants birth certificates for each child and a
    pay-stub, child support statement or proof of food stamps, wic or something
    of the equal to show that you get help from the state. Just ask, yes your
    pride might be hurt for a little while but you will feel better about it in
    the end by doing something instead of nothing.



    Good luck and I hope things will turn around for you and always remember
    that your home, electric, food, and water are the #1 things to take care of.
    Your car, credit and misc. stuff like that can always be fixed, reapplied
    for or paid off later. Good luck again and keep your head up.

    Brandy h florida
    ~*~*~*~*~*~*~*~*~*~*~*~*~*~*~
    All of my posts were transferred from
    the budget101 Discussion list
    ~*~*~*~*~*~*~*~*~*~*~*~*~**~*~

  8. #8
    Deal GURU
    Join Date
    Mar 2007
    Posts
    4,567
    Downloads
    0
    Uploads
    0

    Default

    I have been down the payday loan path. It was one of the darkest times of my life. I felt like such a lowlife going in those places. They are loan sharks plain and simple. They take advantage of people in desperate situations. The people who own those stores must have a dark hole in their souls.

    That said, you were given excellent advice about contacting agencies to help with Christmas and food banks. Those charities are in place for people who are having a rough patch. Our local news did a story about a charity giving away Thanksgiving meals. The lady in charge at the end of the interview mentioned that last Thanksgiving, her family received a food box as they were going thru a difficult time, but this year she is able to give back. You can also contact your utilities and ask for a moratorium on turning off your lights/heat/power during the winter months.

    First thing you need to do is get your house current. Use $50 to buy minimal groceries and all the rest of your money is to catch up the house. Work with the mortgage company on this. Talk to your bank. You may need to close your account and reopen another one. When you get caught up on your house than you can make good on the checks that didn't clear your account. You can make payments to the payday place. They will call and try to scare you and threaten you. Tell them that you will only talk to them once every 2 weeks and if they call other than that, hang up on them.

    Go to http://www.daveramsey.com he has excellent advice and you can call and talk to one of this counselors and they can help you walk thru this.

    Teri
    ~*~*~*~*~*~*~*~*~*~*~*~*~*~*~
    All of my posts were transferred from
    the budget101 Discussion list
    ~*~*~*~*~*~*~*~*~*~*~*~*~**~*~

 

 
Page 1 of 2 12 LastLast

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •