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Not sure if this the correct place to post this but here it goes

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Anonymous
Not applicable

Not sure if this the correct place to post this but here it goes

I'm overwhelmed right now. My take home pay is about $1600

650$ of which goes towards loan payments alone. I'm debating whether or not to just stop paying them all together and instead throwing those 650 at a single loan. My credit is already dinged up enough that I really don't mind.

One of the loans I want to get rid of the most is a pay day loan with speedy cash. I owe $699 dollars. With "CAB" fees of $152 every two weeks which does not even go towards the principal it's just to keep my loan open and in good standing. The loan runs all the way until March when I will have to pay the $699.

This is a toxic load and I know it's my fault and I'm not running away from it. I want to pay it back. But I will keep drowning if I continue at my current pace. I can't snowball payments because I'm already paying the minimum on these loans and I'm barely getting by.

I'm certain that if I bite the bullet I can pay this loan off in a month. And that's only if I stop paying on my other loans. I want to focus on one at a time. I know there will be fees for late payments but I will most likely be making payments of 600 on each loan if i focus one at a time.

So what do y'all think? My plan is probably dumb but I just need a way out.
Message 1 of 6
5 REPLIES 5
marty56
Super Contributor

Re: Not sure if this the correct place to post this but here it goes

Other than the Payday loan what credit payments are you making.  If you can't increase your monthly income and have CC debt I would try to negotiate with the CCCs to see if they would lower your monthly payment.  Your goal of course is to be able to live first.  You can always rebuild your credit.  I did and many others here have done so too.  If you post more specific information on your debt, others may be able to help you better.

1/25/2021: FICO 850 EQ 848 TU 847 EX
Message 2 of 6

Re: Not sure if this the correct place to post this but here it goes

I'm not sure I would walk away from the creditors. Do you have a good enough score to get a consolidation loan? Have you checked your local resources to see if there is an organization which would help you satisfy the perdatory lender?

Gardening Since Sept 2017 until Spring
Message 3 of 6
Anonymous
Not applicable

Re: Not sure if this the correct place to post this but here it goes


@Anonymous wrote:
I'm overwhelmed right now. My take home pay is about $1600

650$ of which goes towards loan payments alone. I'm debating whether or not to just stop paying them all together and instead throwing those 650 at a single loan. My credit is already dinged up enough that I really don't mind.

One of the loans I want to get rid of the most is a pay day loan with speedy cash. I owe $699 dollars. With "CAB" fees of $152 every two weeks which does not even go towards the principal it's just to keep my loan open and in good standing. The loan runs all the way until March when I will have to pay the $699.

This is a toxic load and I know it's my fault and I'm not running away from it. I want to pay it back. But I will keep drowning if I continue at my current pace. I can't snowball payments because I'm already paying the minimum on these loans and I'm barely getting by.

I'm certain that if I bite the bullet I can pay this loan off in a month. And that's only if I stop paying on my other loans. I want to focus on one at a time. I know there will be fees for late payments but I will most likely be making payments of 600 on each loan if i focus one at a time.

So what do y'all think? My plan is probably dumb but I just need a way out.

TBH, I would walk away from the predatory PDL before other creditors. Let it default then settle with them later.

 

BTW, I had to walk away from a PDL in 2012 when I lost my job - never heard from them and never saw a thing on my reports. I had been paying on it for several months, so I geuss they figured they recouped their money.

Message 4 of 6
Anonymous
Not applicable

Re: Not sure if this the correct place to post this but here it goes

I'm with @ Norman....there is ZERO chance in heck IMO one should 'choke' the life out of themselves over keeping a PDL, especially not at THAT % of take home pay...no freaking way!

Absolutely, allow that one to default and deal if a 'work out' later ( and that's IF they pursue, sometimes they don't) the other loans/accounts that report monthly to CRAs are more important.

Obviously, some money management skills needs to be built and practiced to not be in these positions ever again, especially with $1600/mo leaving little to no room for error... however by maintaining the loans/ accounts on credit reports one could use that 'power' to possibly secure a loan from a 'real' source not a PDL big enough to consolidate what seems like not HUGE amounts.... however smaller required payments sound like it would do wonders.

Lastly, as I share with my clients constantly start an additional stream of income, especially when you don't need/want to...lay the groundwork before it gets desperate.
Message 5 of 6
RobertEG
Legendary Contributor

Re: Not sure if this the correct place to post this but here it goes

What is your state of residence?

Some states have regs/statutes barring pay day loans, which may prevent their initiation of any legal action to recover the debt.

 

I would advise a consultation with an attorney registered to practice in your state.....

Message 6 of 6
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