How to Settle Pay Day Loan Debt

How to Settle Pay Day Loan Debt

Are you terribly trapped in the maze of payday loan program? In life we do commit certain mistakes such as taking payday loans to settle our debt. We fail to understand that the payday loan won't allow us to come out of this vicious cycle of debt.
The interest rates for payday loans are very high which varies from 10% to 30% compared to other loans. And if we fail to repay the payday loan within the stipulated time period the interest rate would be twice the previous amount. And people who are already entrapped in this payday loan program can reap the benefit from this article as it is going to talk about how can a payday loan debt be settled.

Calculate the exact amount of debt:
If you want to escape from the clutches of payday loan debt then calculate the exact amount you have and try to settle it. Pen down the amount that is due and the amount you have to pay back to the creditors. It is important to categorize in which order the payday loan falls. The state law is another factor that would have an effect on settling a payday loan.

Place some condition to the creditor before contacting you:
Ask the creditor to contact you through emails or through posted letters as that would help you to keep an evidence of the dealing with him. Send a certified letter that you want to cease the communication, this would help you to avoid harassing telephone calls. They would obey your orders, as creditor harassment is a punishable crime according to the federal law.

Federal Regulatory body can help you:
Gather information regarding state law which is providing you with security against the creditors. Read about the state laws that would show you how to get rid of the harassing creditors. Some states have limited the of interest that the payday loan companies charge and some states have declared payday loan as unlawful. Catch the creditors red handed while breaking the rules that the federal law has implemented then it would be all the more easier to settle the account. You can even lodge a complaint with the state regulatory board if the payday loan companies are not abiding by the state law.

Settle the payday loan debt with CFSA members:

Many people of this state are a member of Community Financial Services Association of America. This community is established for the protection of the debtor and put a control on the unlawful practices of the payday loan industry. The CFSA ensure your financial security and your protection, as it is associated with the policy makers and consumer lawyers as well. In order to get any kind of settlement with a CFSA member, the settlement has to be made before the borrower default in the payment plan.

Enroll for a debt settlement program:

A debt settlement program program can help you to come out of the payday loan debt trap. A debt settlement program can successfully negotiate with the collection agency and can reduce the interest rate and the total outstanding balance. They might help you to settle the debt and then guide you to consolidate your debt so that you can repay.

Pay it by Yourself :

It is preferable to pay off the debts on your own. It do requires discipline on the part of the individual who is indebted. Paying off your own debts won't cost you anything extra, you don't have to be bothered with the burden of another loan in order to to repay the present debt. If you follow certain simple steps then it won't consume much time and won't be that difficult to pay off your debt.
1)Spend wisely and reasonably this would help you to hoard a certain amount of money, this amount can be used to pay the debts.

2)Make a budget before you start spending and put a check on you habit of expenditure. Keep aside a portion of your salary to pay off the loans.

3)Arrange for alternative incomes. Either take a part time job or rent out your garage for for some extra cash flow.

In order to get rid of payday loans it won't be difficult if you follow these simple ways. The creditor won't harass you regarding the debt if you pay them off before the due date.

Author Bio: This post is done by maria bush who is a financial writer of debt,mortgage she has helped lots of debt burdened people with free counseling and advices.