I received a call a few days back from a very desperate lady who was in tears because she had been dealing with payday loan collectors the last 2 months and needed to know if payday loan debt settlement was even possible?
I asked here why she would think it is not possible and she continued to tell me her story, and it is so similar to the many we here at Help With Payday Loan Debt hear every day.
I thought I would share her story here on the website because I know many people will understand what she has been going through because they have been there or know someone who has.
It is also a good read for those who have never dealt with or are dealing with out of control payday loan debt for the first time as it explains what these companies can put you through and it will show you that you do not have to put up with their behavior.
On with the story!
Jennifer, like many others, when faced with an unexpected financial crisis, went to her local payday loan store to take out a $500.00 loan for two weeks.
She knew she would have to pay a high-interest rate for the two-week loan but she also knew from doing some online investigating that because she had a job that paid at least $800.00 a month and a checking account she would qualify for the loan that very same day.
She walked out of that payday loan store later that day with the $500.00 she needed along with the cost of $150.00 in interest and counter-charges leaving her with a $650.00 debt.
On her next payday, she would have to cover the $650.00 she just agreed to pay by making sure the money was in her bank account.
She had agreed to letting the payday loan company make an electronic withdrawal of the payment directly out of her checking account.
The company would pull their payment of $650.00 and the loan would be satisfied in full.
If this loan ended there all would be good. but it rarely ever does end up that way and it did not this time.
As in most stories we tell, Jennifer ran into another financial emergency and all of a sudden there were more bills to pay on her next payday than she had money coming in!
What to do?
She called the payday loan company and they told her of the option of extending her loan two weeks and she immediately grabbed at that option.
They would only take out the counter charge and interest for the two-week loan which was $150.00 and add it to the total of her next payday, meaning she has now extended her $500.00 loan for two more weeks leaving a balance of $650.00 on her next payday.
Yeah, it just cost $150.00 to borrow that $500.00 for the first two weeks and now it is going to cost another $150.00 to extend the payback date 2 weeks but what else could she do? Thank goodness for the extension option or so she thought.
Setting The Trap!
Jennifer now is up to $300.00 in interest and counter-charges and she still owes the whole $650.00 on her next payday and guess what!
So she calls up the payday loan company and tells them what is going on and they extend her again for two weeks and she is again thinking wow, it is now going to cost me another $150.00 to extend this stupid loan two more weeks but what else could she do?
She is now up to $450.00 and she still owes the original $500.00 so it has now cost her $450.00 to borrow $500.00 for 6 weeks and that is IF she does pay the loan off on her next payday but alas, most people end up extending their payday loans an average of 6 times and this time she did not need another emergency to need an extension, she just ran short due to winter heating bills.
This story goes on for quite some time and in the end, Jennifer has 3 active payday loans, has an outstanding balance at the payday loan company of about $4500.00 and the payday loan company has destroyed her checking account by repeatedly hitting her account for payment after she went into default.
All this debt over a $500.00 loan and now she is dealing with the collection practices of these companies, which is ruthless!
They are telling her they will NOT settle for anything less than what she owes and are threatening her with legal action, calling her at work and at home, talking to her references she used when she took out the original loan, and even calling her boss!
If she would have done a bit more research on how to get out of payday loan debt she would have found us and known that she could have stopped all of this long before it reached the $4500.00 mark. but even so, we managed to get her out from under this debt in 18 weeks and saved her about $3300.00!
Even so, we managed to get her out from under this debt in 18 weeks and saved her about $3300.00!
We stopped all of the collection activity the first day she contacted us and renegotiated her amount owed getting a little under the $3300.00 stated above eliminated from the total owed.
We then set her up on an affordable bi-weekly repayment plan and withing 18 weeks Jennifer was payday loan debt free and smiling!
Payday loan debt can skyrocket in no time and before you know it you are buried in the payday loan trap so deep you do not see any light from above!
Let us get you out from under this by using out Payday Loan Repayment Plan and get some relief like we did for Jennifer and thousands of people like her!
To answer her question: “Is Payday Loan Debt Settlement Possible?” Yes, it is, and it is easy!
Thanks for reading Jennifers’ story and if you or anyone you may know are in need of help with payday loan debt please send them our way!
Do you have a story you would like to share? Please do so below in the comments!
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