Payday Loan Advice?

[Emily]

I recently got into a tough spot and had to take out a $500 payday loan. Before you tell me, I am WELL aware of how stupid they are and how you should never use them, but as I said...I was in a real jam. Any advice on how to get out of it fast. I just don't have the money to cover more than the interest. Is there a way to try and talk them into a lower interest so I can get it paid off?

[DianeScraps]

Uggg do you belong to a credit union that you can get a personal loan from? Maybe (and I HATE credit cards) a credit card that you can pay it off with.

Can you get a second job or work more hours at your job to get it paid off.

Beyond that as Dave Ramsey would say "Live on Rice and Beans, Beans and Rice" until you can pay it off.

[taxchyk]

maybe find something to sell. It will go on forever otherwise :(

[elizabethm]

Part time job? That way you can pay off the loan and get an emergency fund in place. I know they suck (the pt jobs) but it's a means to an end.

They don't want to talk to you. Their business model is that you won't be able to pay off the loan. You can try to move it to a credit card and pay that off with the part time job.

If you don't have or haven't read Dave Ramsey's Total Money Makeover, it's a super read. It'll motivate you!

[xnyer8]

Ok- speaking from experience ( a few years ago)-because I had no way to pay it all off at once, I made a plan... I can;t remember exactly what the cost of the loan was ( i.e. the interest rate) so I will make it up...

Let's pretend to receive 500.oo, you will write a check for 615.89
The next time it rolls around ( when you get paid), you will write ask what it costs to get 495 ( or lower if you can), let's pretend that it's 610.74...Now the next time take the initial $5 ( 500 minus 495, add the diffeence between the "original" check amount 615.89-610.74- you get 10.15, this time get a loan for 484 ( that is 495 minus 10.15, then round up a dollar)...It will take forever but be persistent and add as much as you can to the payoff-if you get a $5.00 survey check add that and get a loan for $5 less plus the amount... The payday company i worked with only had rates/loan amounts posted in $50 increments but I brought a piece of paper and asked what the amount was in $25 increments.. After a month or so , I was able to decrease by $25 per pay period...

It took me about 5 months to payoff a payday loan of $300 but I really had no extra income to put toward it- It is critical that you stick to the plan -no matter what....

Good luck- don't beat yourself up about it- you did what you had to- so make a plan and move on...

HTH-
susan

[berlinsmommy]

Do you usually get a tax refund? If so, how much? If you usually get a refund, contact your payroll or HR dept at once and change your withholding. If possible (and if it is still less money than your anticipated refund), try to get a few paychecks with NO federal taxes taken out, and use whatever extra money that generates and send it straight to the payday loan. Just don't forget to change back your taxes.

[newatthis]

Uggg do you belong to a credit union that you can get a personal loan from? Maybe (and I HATE credit cards) a credit card that you can pay it off with.

Can you get a second job or work more hours at your job to get it paid off.

Beyond that as Dave Ramsey would say "Live on Rice and Beans, Beans and Rice" until you can pay it off.

It should be beans and rice w/ a q! Seriously, I would get another job and work like crazy to get that paid off. Start selling stuff until you have nothing else to sell!

[megan_love]

My mom is a manager of a pay day loan business. The best thing I know to do [from experience of listening to her talk with customers days on end] is to borrow again, yet when you borrow ask to be put on a payment plan. With this you will have a set limit to pay each payday, suchas $50/payday x 11 times = $500 plus the interest.

And yes, most of the places are willing to work with you & will help you to where you can pay it off, just ask them. It doesn't hurt. They are geniunely friendly & nice :)

[lmcconne]

I vote for the rice & beans plan. Cut out every "extra" in your financial life. If you're buying premium gas, switch to regular (I promise you won't notice the difference). If you have cable TV, cancel. The list goes on.

[Michelle]

I've never even heard of this place/service(?); it sounds like a legal loan shark! How much interest are we talking here?!