Now that money is tight, most people are turning to payday loans frequently. Payday loans are also known as cash advance loans. These are generally offered by check advance or cash advance stores which are seen almost everywhere. It’s not really difficult to get trapped in this vicious cycle.
Payday loan settlement is one of the ways to take care of your payday loans. However, it’s nothing like payday loan consolidation. However, if you’re interested in going for a payday loan debt settlement, then try following the steps enlisted below.
Have a good understanding about payday loans
If you’re interested in going for payday loan debt settlement, then it’s really very important for you to have a clear understanding about payday loans. Payday loans are actually short term loans. They not only have a high interest on them, but also have other fees involved. You also need to be aware that there are certain things that your lenders can or can’t do. This knowledge helps you when you’re negotiating with your lenders.
Know the laws
You should research and go through your state laws well. Surely you wouldn’t like to end up getting harassed unnecessarily. Payday loans have been outlawed by some states, whereas other states allow a limited interest to be charged. If there’s any instance wherein your lender has broken any law, then payday loan settlement becomes comparatively easier.
According to the laws governing payday loan debt settlement, your lenders can’t force you to sell your car or property to settle the debts that you owe them. Moreover, payday loan companies can’t garnish the wages of the borrower without a court order.
Go for a good payday loan settlement company
A good payday loan settlement company should offer you a written contract wherein all the provisions shall be clearly stated. You should also know that payday loan settlement law states that no advance fees should be charged from the debtor.
You can ask for a payment plan
In case your collections agency doesn’t agree to a lump sum settlement, then you could also go for a settlement wherein a payment plan is involved. There are certain states also that require the collections agency to accept payment through an installment plan.
Settle your debts as soon as possible
You can write a letter about the settlement offer and the amount enclosed. Remember to send the amount by certified or registered mail. This will ensure that the business or individual will actually receive the money sent. You also get receipts from certified mails which tell you about when the payment was received.
You must pay the payday lenders within the due date
It’s extremely important that you should have deposited the payday loan amount into your checking account within the due date itself. You could of course make the payment in person.
Get the letter that states your debts have been cleared
You should compulsorily obtain a letter from the business or the individual involved stating that your debt has been fully paid. Your settlement agreement should also contain that the credit bureaus are informed about the debts being paid by your creditors.
Hence, if you follow the above steps then you could settle your payday loan debt without getting into any unnecessary legal hassles. Lead a debt free life very soon by doing things the right way.