How can you get out of too many payday loans?

Answer 1

Budget better, get another or additional part-time job. See if you qualify for any assistance if you are low-income and have children. If you are eligible, join a credit union instead of a regular bank. Many credit unions now offer loans with low interest rates on a sliding scale depending on your income for the eligible loan amount.

All a good idea if you can do it, but there are simpler solutions. There are sites that claim to help you consolidate payday debt, but many of them have been accused of shady practices, so check them out first. The first thing you should really do is close your bank account because they will keep trying to get their money out of it. Most payday lenders will not listen to you when you tell them to stop. Once your bank account is closed, be prepared for numerous phone calls. Understand that they may make threats that are illegal and violate the FDCPA laws. If your state allows it, they might be able to sue you for default, so check your state laws. Some states have made payday lending illegal, and the contract will not hold up in court, therefore you may not be obligated to pay at all. I would always recommend trying to set up a payment plan, but many payday lenders don't want to fool around. They are in a hurry to get the money, and may not be so willing to work with you.