Payday Loan Woes

Ideas for Getting Out of a Payday Loan Ordeal

I need advice. I took out payday loan for $1000, but could not pay it back. The debt went to a balance recovery network.

I said I would pay something, they said no we want to whole thing. They are harassing me at work. They told me I would lose my driver's license, so on.

Dora

First read this article on Bill Collectors and the laws that apply to them. If you live in the US, this article spells out your rights and how to stop bill collector harassment.

One thing you will read is that it is against the law for the bill collector to make threats he knows is false. Among these is losing your drivers license. All that can be done to you is for the creditor to obtain a judgment against you and then try to collect it by wage garnishment or seizure of assets.

Obviously, the easiest way out is to repay the loan, but you would have done that already if you had the money. Payday loans are incredibly expensive.

If you can get a loan from a friend, relative or credit union you would come out way ahead. Even if you have to deal with a finance company you should be able to save a ton of money.

In the alternative see a credit counselor. He can tell you what your options are. Also credit counseling through a local Consumer Credit Counseling Services office is required before you can file for bankruptcy.

I wish you luck.