Getting out of the PayDay Loan Trap

[freemkt]

Originally Posted by yhwhshalomjr

How does one get out of this never-ending cycle, without going to jail?? for being in default which can usually result in a bounced check, NSF fees, and possible prosecution by the legal system if you are unable to work out a plan to pay( if they are not willing?) I know a lot of senior citizens that are over their heads in this cycle of debt, and flipping the loans to repay another.
It's banned in most states I understand except for a few.
Anyone know any legal recourse to prevent being prosecuted? I know someone who had to stop payment on a check and they were arrested, and also they closed their bank account and the same happened. it started out with a hardship that anyone could have and turned into a nightmare; She's on a fixed income and cannot afford not to borrow (flip) just to pay the principle. What is the best way out of this ?
Thanks for any suggestion

Sounds like a red state problem.

[freemkt]

Originally Posted by 70Ford

Get a consolidation loan from a bank....or...........

If your credt rating is so low than you can't get a bank loan...then....

Get a credit card. Pull the maximum amount of cash out from an ATM. This cash payment will be loaned at about 30 percent interest. Which is better interest than a payday loan.

Pay the payday loan off, or as much as you can. Then pay off the payday loan. (Pay off the higher interest loans first.) You might want to get a BUNCH of credit cards, and withdraw the max amount of cash you can, and totally pay off the payday loans. Then pay off the credit cards.

What if you can't get a credit card?

[freemkt]

Originally Posted by FarNorthDallas

There's a few folks on prosper dot com asking to borrow money to get out of the pay day loan cycle. Maybe that's an option.

But are they getting funded?

[ma5cmpb]

Originally Posted by freemkt

But are they getting funded?

I got caught up in a vicious cycle. I had 2 loans out at once. I called the companies and i told them that i lost my checks and that i want to make payments another way i.e. western union. They agreed and now they stopped taking money out of my account. One company kept trying to take money out of my account but i disputed it with the bank and they reversed the charges. I pay them back every other week by western union and i only have 2 weeks left. So call them to see if you can make other arrangements and if that doesnt work then try my method. Its not shady cause your paying them back on your timetable and not theirs.