When I can't pay my payday loans back, I know I am in a world of hurt. When I can't pay my payday loans back and I find myself with multiple cash advance lenders deducting from my paychecks with no end in sight, it can feel hopeless, and unfortunately I am not the only one to experience this misery.
What to do If you Can't Pay
The first thing to consider when you cannot pay your payday loans as agreed, do not panic. The normal reaction is to become overwhelmed and emotional, as it can feel like there is little hope to ever climb back out of your situation. This is not true, you have options.
If you have multiple payday lenders withdrawing money from your accounts and you are unable to pay them back, the first step is to immediately call your payday lenders. Do not be afraid of communicating with your lenders, as they do not want you to be delinquent on your bills either.
Discuss your situation with your payday lenders and try to put together a payment plan that is manageable. If you find the customer service agent unhelpful or unsympathetic, ask to speak with a manager, as they will be more responsive to your needs as a borrower. Clearly indicate that you intend to pay your loan but are simply unable to under present conditions.
You achieve two goals when you communicate with your payday lender like this. Payday lenders commonly have many accounts in default and have programs to work with you. They often will not report you to the credit bureaus so your score will not be negatively impacted while you work to repay your loans but they typically will report you to teletrack if you do not communicate.
What is Teletrack?
Teletrack is a reporting system used by payday lenders that keeps track and pursues delinquent accounts. They are very aggressive and will call your home multiple times throughout the day and are very annoying and not pleasant. It is best to avoid being on their radar if you can.
If you find yourself being pursued for a delinquent account much can be said by the telephone operators, but the truth is that your payday loan delinquency is a civil offence, they can sue you, but you can not be arrested.
The laws regulating how payday lenders can pursue repayment of your delinquent account vary from state to state. Knowing the state laws restricting payday lenders can greatly benefit you and it is worth using the internet to do a little research for your particular state.
After you have contacted your lender in hopes of putting together a manageable plan to pay back your payday loans it would be wise to speak to a financial or debt counselor. You may qualify for debt consolidation loans that can reduce your payments, or benefit from some personal finance shuffling.
Ultimately, I was able to pay back my payday loans by taking on a second job. It was an unpleasant period but hard work and perseverance saw me through it, and the lessons learned I hope I will never forget. If I can't pay back my payday loans now, I would follow these tips.