Know the Ways to Settle your Payday Loan Debt
Payday loan is the short term loan that helps to deal with the cash crunch at the middle of the month. People take out this loan to pay off the urgent medical expenses, car repair bills and so on. But the APR charges of this loan are higher than any other loan program. Therefore, you should avoid taking out loans frequently. As a result, if you default on your payments then the accruing interest on the outstanding balance will make it unaffordable. In order to pay off the existing loans you might have taken out another payday loan and end up incurring a huge amount of debt. In this situation you can opt for a payday loan settlement program to eliminate a considerable portion of your debt.
Know the ways to settle your payday loan debt:
Acquire information on the state laws:
Try to acquire more information on your state law surrounding the payday loan store. Verify from your lenders if they have license, authorized by the state governing body. If you see that the lender does not have a license then you can take legal help to lower the owed amount. In some state the payday loan is illegal so you can threaten to take legal measures if the lender doesn’t accept your settlement offer.
You can approach your lender and inform about the reason for your default on payments. You can tell him about your financial crisis and convince the lender to accept the settlement offer. With the approval of the settlement offer sign a written agreement stating the settlement amount.
Start making the payment within the scheduled time but remember if you default on your payment the agreement will be terminated. Try to maintain a record of the payment receipts with you for future references.
Hire a settlement company:
You can hire the service of a settlement company and it will negotiate with the creditors on your behalf. Before you work out a plan with the company ensure that you have done a research on the company profile as well as verified its track record. You can browse the company website to review the client’s feedback forms and testimonial given by the clients. Check whether the settlement company is accredited with International Association of Professional Debt Arbitrators (IAPDA), Better Business Bureau (BBB) etc. Avoid dealing with companies those are not associated with any of these organizations.