Payday Loan Advice

[movinonup79]

I need some help with this.  I have been facing a lot of medical debts lately and trying to keep my head above water.  I have a $1,000 loan out (with interest it is $1180) due on the 25th.  They took an actual check from me.  I cannot pay this back at the moment.  I wanted to find out some options.

Can they still pull from my bank account if I put a stop payment on the check?  I really don't want to close my current account as I have a lot of things linked to it.

Also, I was thinking of writing a cease and desist letter to send next week and also write another letter proposing a plan of repayment.

How can you stop the interest from continuing to accrue at the high percent?

Any advice would be appreciated.

Thanks!

[Anonymous]

Well you could put a stop payment on a check, then you can get charged with writing a bad check. And also get sued for non payment of a loan. So my suggestion is to go up there explain your situation and try to work it out. ignoring companies will just let them add on fees and interest, all they want is their money back that you promised to pay back.

[Anonymous]

Also a lot of time, you can pay just the interest for 125$ and that will buy you another 2 weeks. or how ever often you get paid.

[movinonup79]

I did that, now the final amount is due on the 25th, there is just no way I can pay them for a few weeks, especially since now I'm going in for CT scans and numerous tests.

[Anonymous]

I would just go up there and ask what they can do. They are predatory lenders, and just love the interest. But if you stop payment on the check or they cash the check with no funds available or you close the account. They will file charges for bad check, and depending on the amount can carry a serious fine and or jail time. So again I would tell them not to cash the check and see if they can do a pyament plan over a few years. Back in my payday loan days they would just keep pushing off the payment as long as I paid interest and 50$ of principle every 2 weeks. Granted it took forever and I proabbly paid the loan back 10 fold, I still borrowed their money under their terms.

[Heavanly1]

The short answer: you can't stop the ridiculously high interest from accruing unless the Payday loan place agrees to it. Since it's a payday loan place, this is highly unlikely.

From what I've read about Payday advances, you usually authorize them to draw the funds directly from your bank account (using the information from the check); this simply means that a stop payment would not stop it from hitting your account. I've heard stories of payday places trying to withdraw the funds daily and people racking up lots of bank fees as a result.

Payday advance offices are  not unfamiliar with the date of repayment approaching and that person not having the funds to cover the check. Because of this, they usually allow the person to "rollover" the outstanding payday loan into another one (something like getting an extension).  You'll have to pay the initial fees all over again but it'll give you some breathing room to come up with the cash. However, I wouldn't recommend this route because it can become a cycle for some and only lead to being deeper and deeper in debt.

My advice to you would be to borrow the money (from family, friends, etc.), if you can, and simply be done with the payday loan completely.

[Creditaddict]

Never take these kinds of loans out... you just end up barried in them and they get worse and worse.

The only thing you can do now is maybe try to do half payment on the 25th and the rest in another 2 weeks?

I don't know how these companies work besides charging the 275% interest.

Can't you be billed for your medical stuff and use that money to pay this loan off?

Medical will usually allow payment plans to at 0% interest, so don't borrow money to pay off medical that would normally not be charging interest

[movinonup79]

I'm not borrowing money to pay medical...but I have had to spend all my available cash for the outrageous price of my prescriptions.  I just need a little time to get everything in order!  So I'm going to call them, plead my case and see what happens.

[pritchardhallhokie]

Op,

What state did you take the loans out in?

[movinonup79]

Creditaddict - I need prescriptions (which have been in the hundreds of dollars) and I'm pretty sure Wal-Mart or Walgreens isn't going to send me a bill.