How to Settle Payday Loans
If you have a payday loan and you are unable to make your loan payments, look to settle your debt. Interest rates can be very high on these loans making it difficult to keep up on payments. Make sure to contact your payday lender to settle your debt if possible before it is sent to a collection agency.
- Contact the payday lender that you have your loan with and let them know that you will no longer be making payments on your loan. The best way to do this is in writing so that there is no question that you have notified them. Discuss with the lender if they will allow you to settle your debt with a discounted lump sum payment. The payday company may negotiate with you so that they are able to get as much money on the loan as possible.
- Locate laws in your state to see if your payday lender has broken any laws. Many states regulate how payday lenders run and how much interest they are allowed to charge on loans. If any laws have been broken, contact your payday lender and advise them that you are aware of their improper practices. This will give you an opportunity to renegotiate a final payment on your loan if you were unable to before.
- Wait to be contacted by the collection agency that has taken over your debt if you are unable to work out a deal with the payday lender. Collection agencies often allow you to pay a percentage of your debt if you do so in full right away. This will be the best way to settle your debt if you have the funds available. If you can't make this type of payment, set up an agreement to make installments on the debt that you owe on a monthly basis.
- Contact a debt settlement company if you are unable to make payments on your debt to the collection agency. These companies will help you consolidate your debt so that you can start paying your debt off with payments that you can afford each month. This will allow you to pay down debt as well as avoid harassing phone calls about delinquent accounts to lenders and collection agencies. Be aware of debt settlement companies that sound "too good to be true" because these may be scams. Always research possible debt settlement companies you are looking into.