Easy ways to settle Payday Loans
Payday loan is a great solution when you are confronted with sudden cash
crunches. It is a small term loan, which you take out on the condition that
you will pay it off by your next payday. But the only drawback that bothers
consumers is the high APR that these loans carry. Here you default on your
loan and there goes up your outstanding loan figure. Are you in a similar
trouble? Has your payday loan spiraled out of your control and you cannot
afford to make the entire payment? Then, you can consider settling your
If you do not know how to settle payday loan debt, then here are some
useful tips on how to go about it:
- First, notify your payday lender in writing that you are financially strapped and cannot make payments on the loan.
- Then, request in writing that the lender stop all communication with you. Under the FDCPA, any creditor/debt collector must cease all communication with the debtor if the debtor requests for the same.
- Then, propose a settlement offer to the lender. Tell them that if your settlement offer is declined, you might have to file for bankruptcy. Always keep in mind that creditors know that a bankrupt debtor is a lost venture whereas a settlement offer is more profitable. So, your lender is likely to accept your settlement offer.
- Try and offer a lump-sum as settlement amount, because the bigger the settlement amount, the more are the chances of getting your settlement offer accepted. So, it is advised that before you start negotiating with your creditor, save up substantially in order to make your settlement offer. But do not agree on anything more than 50% of your outstanding amount.
- You can pay the settlement amount either in a single payment or in installments. Once your settlement amount is determined, try to gauge whether you will pay it in installments or in a single payment. If you think you cannot make it in a single payment then negotiate a payment plan with your creditor so you can pay off the settlement amount in affordable installments.
But if you fail to negotiate a fair settlement deal with your lender, then you
can enroll with a Better Business Bureau accredited debt settlement firm in
your state and get your payday loans settled. Also, do not forget to learn
about the payday lending regulations in your state, while you are dealing
with your payday lenders.