Payday loans. I screwed up!

[NeekNeek]

I owe three payday loans companies $300 dollars each. I can't pay them back. I have a car payment due next month and I'm not defaulting on that. What is the best way to deal with this???

I'm so emabarrassed.

[breathing_easier]

Most importantly, don't bury your head in the sand and hope they'll go away. Call of three of them immediately and attempt to make at least installment payments. This might hold them off for a while. Is there any way you can get a second job, if only temporary until you get these loans paid off? Delivering papers or flowers? Do you have a special skill that you can parlay into income? Can you cut out cable, cell phone, Internet? Take a hard look at everything and I'll bet you'll be able to come up with the $900.

[anti-something]

agreeing! dont ignore them, try to come to some kind of arrangement. hold a garage sale, sell stuff on ebay, ask family for early xmas/b-day money! but most importantly talk to them, if you come to an agreement stick in writing and send to them.

and then avoid pay-day loans in the future, nothing but grief!

[c m chase]

I second that eBay or garage sale idea. Depending on your area, I'd probably rather go with a garage sale because of eBay fees and chance of non-paying bidders, shipping delays, etc.

Don't be embarrassed...if everyone on this board never made mistakes, then Admin wouldn't have a very interesting site.

[Ravenous Wolf]

Payday loans are the worst…

The loan sharks (finance companies) I used to go to charged me 88 percent interest. Payday loans can charge up to 200 percent interest.

The best step is to NEVER use them because you will be caught in a never-ending trap of robbing Peter to pay Paul.

I have been in your situation before.

But these outfits thrive on people who need money and they are more than willing to exploit you.

And if your back is up against the wall, then payday loans make you ripe for exploitation.

The hardest thing to do is to change your lifestyle. In one apartment I used to live in, I had no TV, no cable or even a phone. I also had no furniture except a bed. I ate my food on the floor.

Sometimes you have to go through things like that. I know it sucks big green donkey [EXPLETIVE DELETED].

[c m chase]

I know it sucks big green donkey [EXPLETIVE DELETED].

Boy, I missed you while you were gone!!

[admin]

Yeah, do whatever you can to pay everyone as quickly as possible - selling items may not do everything, but you can try.

Also, you may want to call your car loan comapny and ask them if they have a "skip payment" program. What this is, is a one-time skipping of a car payment, which they put at the end of the loan, it does add additional interest, but it's a godsend at times for some people.

[breathing_easier]

, sell stuff on ebay

Good suggestion. I've actually done pretty well on eBay. Have been a buying member since 1998 but only started selling some of my collections through eBay this year. Knock on wood, have only had one non-paying bidder. The $$$ were nice while on vacation in June!

[anti-something]

not to hi-jack but i guess i am anyway..

what always surprises me with ebay stuff is what sells, and how much people are willing to pay.

for one 'fire' sale we went thru all these old boxes of stuff DH had in storage, there were old Atari games (one sold for over $300!!) old comics (sold a set of old Rocketeer mags for over $200 to some guy in China of all places) and just all sorts of things i would have thrown away, but people out there want them, and are willing to pay.

so to OP, go thru your stuff, look up on ebay to see if its selling, what price you can get etc.

[breathing_easier]

The hardest thing to do is to change your lifestyle. In one apartment I used to live in, I had no TV, no cable or even a phone. I also had no furniture except a bed. I ate my food on the floor.

[EXPLETIVE DELETED].

I have a friend who is a veterinarian that worked and paid his way through vet school. For two semesters (this was before cable and computers) he lived in one room and ate nothing but Ramen noodles and macaroni and cheese because he didn't have one extra cent to spend on anything but rent, books and tuition. He said it really opened his eyes as to what we're really able to do without.

I want to get rid of my home "land line" in the worst way, but since I live alone I want to make sure if I ever have to call 9-1-1 that they'll be able to respond even if I can't speak or if my cell phone is dead. Land line also comes in handy when there is a power outtage (the Big Blackout of 2003 comes to mind) as I can't charge my cell phone with no power. I love living alone, but I consider the land line a safety feature, at least until they can accurately pinpoint the origin of cell phone calls. Of course, I have the very most basic land line service. Use my cell phone for everything.

[Brad14146]

If they have not attempted to cash your checks yet, check your contract. Most payday companies allow you to stop them from depositing your check, and then giving you up to a month to pay the loan. This would give you alittle more time and keep you from obtaining bank fees.

[NeekNeek]

Thanks everyone! Here's my situation. My fiance is locked up. So now I'm by myself for the next year where, before I wasn't. He was there to pay bills while I'm in school. I was ok. Now, I'm back home with my mom. I'm losing it. I have a $400 car payment (just got it, the 1st payment is due 10/12), $400 monthly school bill, $65 phone bill, $80 cell phone bill, I chip in for cable and electric $90, car insurance, and I have to buy my own groceries. Oh and I give my mom $200 a month. I'm a full time student and I work only 28-32 hours a week. Then there's the train fare, gas $$$, etc...

I was at my school yestrday talking to my financial planner and she said to pay them off with the loan money refund I'll get in late November (if I get it) Which I a good idea at only 3% interest.

What should I do to hold them off until then? What can they do to me in the meantime? Should I call them and just be honest and say I'll send them each $20 every week???

[Relocated]

I went through this for a while.

The company I used let me roll the loans over only paying the interest and not actually producing the cash to pay the primary loan..

Damned expensive way of borrowing money though.....

[meebones]

What did you borrow the $900 for?

What is the $400 a month to the school for?

Why did you go out and get such a high car payment for? Can you return the car and get a cheaper one?

You need to get rid of the phone, cell phone - right there you will save $145.00 that that is half of one of your payday loans.

Car insurance - if you had an older cheaper car the insurance rate would go down, also call around and make sure you are getting the lowest rate.

Can you tell your mom about your situation and ask if you can not pay her $200 +$90 for three months cause that way you could pay these off. Afterall she was living without prior to you living with her.

If you are taking the train why did you need a car?

[travelgrl]

Have to agree on the Ebay thing- I just listed about 33 items last week, mostly kids clothes and a few toys. Who would have thought that my DS Batman Halloween Costume would sell for $25!! I think I paid like $20 for it last year! So at the end of the auction all but 7 items sold and I made a nice profit of $250. The buyers pay shipping costs and I add in my listing fees into the shipping and handling so I am not out anything.

You would not believe what people buy on Ebay.

Contact the check cashing places and explain your situation. You have a good month before your car payment is due.

Good luck!

[DocDon]

Another thing to do is cut your expenses. You don't need $80 worth of cell phone every month. Lower your package. You don't need a cell phone and a regular phone. There's another $65 that could be better spent.

I survived college with no car and Ramen Noodles - it can be done.

It's tough times, but you have to cut all unwarranted expenses. You'll be surprised what you can do without. And remember - things will get better. I used to tell myself that while eating peanut butter crackers for dinner.

Chin up!

[admin]

I want to get rid of my home "land line" in the worst way, but since I live alone I want to make sure if I ever have to call 9-1-1 that they'll be able to respond even if I can't speak or if my cell phone is dead. Land line also comes in handy when there is a power outtage (the Big Blackout of 2003 comes to mind) as I can't charge my cell phone with no power. I love living alone, but I consider the land line a safety feature, at least until they can accurately pinpoint the origin of cell phone calls. Of course, I have the very most basic land line service. Use my cell phone for everything.

They do make solar rechargeable batteries for almost every type of cell phone...

http://www.smarthome.com/9605.html

http://www.cetsolar.com/batterycell.htm

http://store.sundancesolar.com/mi3sochforno.html

[DocDon]

I want to get rid of my home "land line" in the worst way, but since I live alone I want to make sure if I ever have to call 9-1-1 that they'll be able to respond even if I can't speak or if my cell phone is dead. Land line also comes in handy when there is a power outtage (the Big Blackout of 2003 comes to mind) as I can't charge my cell phone with no power. I love living alone, but I consider the land line a safety feature, at least until they can accurately pinpoint the origin of cell phone calls. Of course, I have the very most basic land line service. Use my cell phone for everything.

Back in 1998, the FCC issued a mandate requiring carriers to have a system in place that will transmit vital information on 911 calls. Newer phone have GPS built in.

A land line is not fail-safe. Pull the wires out of the network interface box and you have no phone service.

If you want to keep the land line, get a toll saver package and a dial tone. Stay away from those "discount packages". Before you know it, you'll be paying $60 a month for a phone you don't use.

[Ahntara]

About the phone: Keep your land line and throw your cell away. $23-$26 per month for basic service (lowest in my area) and $10 every 90 days for a calling card. Get a prepaid cell if you are worried about dialing out in an emergency.

All the other suggestions are great. You have two choices. You have to either increase your income or reduce your expenses. It is amazing what you can do without when you put your mind to it. We all have to live someplace, eat, wear clothes. You probably have other essential expenses as well. Try looking at your finances and seeing if you can identity the difference between "want" and "need". It's a good life lesson as well.

Your situation is unique and no ones know what you can tolerate. (don't think I could do the Ramen noodles, but...) There is such value in working your way through a difficult situation and taking the hard way rather than the easy one.

*feels inspiration coming on*

You're going to be so proud of yourself when you get through this and so competent about managing finances through a disaster. Life happens to everyone, live and learn and be ready for the next time it happens to you.

[DocDon]

About the phone: Keep your land line and throw your cell away. $23-$26 per month for basic service (lowest in my area) and $10 every 90 days for a calling card.

What about people that don't live in your area?

Some companies (like SBC) charge $23 just for the dial tone - doesn't include toll calls or long distance. Add it all up, plus $15-$20 in taxes and fees, and land lines suck compared to some cell phone packages, plus you're not restricted by a cable.

[copperarab]

OHHHHH MY GOD!! Neek Neek, you pay your mom $200 PLUS half of the bills AND food?

And here my 2 college kids are griping about giving me $25.00 per week each..that includes rent/food/bills...

Have a good heart-to-heart talk with your mom girl.

[CW]

If your car payment is due in october, the first one, I would see about going back and letting the dealer know you can't keep up the financing. You do have a situation with your sig other being unavailable. Try to cut costs and use public transportation. Once those loans are payed, the three pay day loans you will be better off. Talk with your mom to give you a break until january. Once your loans are payed buy a used car. Just do your car research and have a mechanic check the vehicle out. Used cars are worth the money. You can get a fully loaded vehicle cheaper by buying one that is 2 to 5 yrs old. In your situation a new car seems like too much. As everyone knows cars are not an investment they lose value immediately. Good luck. PS I have used the Ramen diet myself.

[jerseygirl]

Neek Neek. We're nearly neighbors, living about 20 minutes away. Check to see if any of your friends or family living out in the Burbs would be willing to let you live with them. Then you could pay them rent, and save significantly on your car insurance as well.

Car insurance rates in Philadelphia are obscene! The money you could save in that alone is more than enough to cover those payday loans.

Plus, if you can find someone with an apartment who wants to take on a roomate, your expenses would be less than paying your Mom $200, plus rent.

And cooking for one is not really that expensive. You would save a bundle over what you would pay for prepared or fast food. I know.

Not a good situation that you're in, but you are in good company. Looking back, I think we all can appreciate the sacrifices we've made and the lessons we've learned.

Everything looks sucky right now, but you'll get through this.

[DocPC]

I think the OP has escaped....