It is about time to put a foot down and get out from under payday loans today!
Easily said from people who are not under the weight of them, but quite a different story when you are living with payday loan debt.
There is a new trend that has been building over the last 10 years and it is dominating many low-income households today.
People are not only living from pay check to pay check which can be stressful at best, they are now living from payday loan to payday loan!
This trend is dangerous and can cause problems in a person’s family, finances and all around well being.
We offer everyone who is in the latter position an easy way to get out of payday loan debt and we can start doing this today but first, let’s explore how it is affecting people’s lives with a real customer horror story.
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Mary And Sam
Sam was making OK money working two jobs and things were going pretty good. Mary was a stay at home mom dealing with raising two children and Sam was holding the finances together pretty well.
One day Sam woke up to a basement full of water due to an exploding clothes washer hose and soon realized he had more than just a mess, he had an issue with the water heater too as the water flooded out the pilot and upon clean up Sam realized that too was wore out.
Needing about $1000.00 to buy a water heater that he would have to install himself, along with fixing the washer hose, Sam went online and took out a payday loan for two weeks.
Sam did not have good enough credit to go get an emergency loan from the bank, and he needed hot water and the washing machine right away for his wife and children to be able to function properly.
He needed cash that day and we all know the payday loan companies offer same day cash if you can provide proof of employment and $800.00 or more income a month, which Sam easily provided.
Sam had his loan secured by 3 PM, a new water heater and washer water hose purchased by 5 PM and was home installing it by 7 PM
Well, this two-week loan for $1000.00 was set up to come out of his checking account automatically, a $1150.00 deduction, ($150.00 is interest on the two-week loan) on his next payday but Sam made a big mistake. He did not pay close enough attention to the loan agreement and assumed his loan would be paid in full on his next payday.
When a person uses the online payday loans they need to understand up front how the deductions work.
Sam did not pay attention to the directions, as many who are in a hurry do not, and missed the fact that to pay the loan off in full, or any other amount above the current interest charge, you must contact these companies by phone not later than 3 days prior to the payment date and specify your intentions.
If you do not do this the company automatically takes out the interest only and recharges your account with the full loan and a new 2-week interest charge. These online loans are set up fro maximum profits and Sam just got caught in a payday loan trap.
At first, Sam was like wow, I have extra money in my checking account, but then soon realized he still owed the $1650.00 and was just charged $150.00 to borrow that $1000.00 for 2 weeks.
Feeling a little silly that he got taken by this company he vowed to make sure he called them and set up full payment on his next payday, within the 3-day limit as stated in his loan agreement and left it at that, a bit poorer but a bit wiser.
More Troubles Yet
Well, long story short the car broke down about 4 days before Sam’s next payday and now armed with the information that if he does not call the loan company they will only take out the $150.00 interest charge and he will have the extra money to fix the car so he lets the payday loan company extend his loan again.
He now has $300.00 invested in borrowing his original $1000.00 and he still owes the original loan repayment of $1650.00.
He is grateful he can fix the car, his wife is more or less still in the dark at how much he is spending on this loan, and he promises to himself that he will not, no matter what, extend this loan again.
Even More Trouble Yet
You can see where this story is going, and it is repeated by people over and over every day of the week.
Sam ended up doing what most people do, extend that loan 8 times, (the national average) and when he finally could not keep up anymore and his checking account blew up, he had spent &1200.00 to borrow that original $1000.00 for 3 months and he still owed the original loan of $1650.00 plus he now had checking account troubles and his wife was not pleased.
Sam was getting sucked into the payday loan trap deeper and deeper by the day and he needed to find help immediately!
Sam could have done what many do in his situation and went out and got another payday loan to cover his first payday loan payments and bail out his checking account which in most cases just ends up in the same place as Sam was in only with much more debt.
Instead, he reached out to us, where we offered him our payday loan repayment plan and cleared up all of his payday loan debt at about 40% the original balance saving him hundreds of dollars and getting him back on track financially and making Mary a much happier partner!
Sam and Mary did have a happy ending and learned a huge lesson in how to avoid any future payday loan traps, and they are happy to share their story with everyone with hopes it saves people for going through the horrors of being trapped in this kind of debt.
Are you dealing with payday loan debt? give us a call at 1.877.280. 5500 and we can get you on the road to recovery from the payday loan trap!
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