How to Be Free of PDL Debt

A payday loan, or PDL, is a type of high interest loan that can trap consumers in a seemingly endless cycle of debt. The consumer takes out a small loan to tide over until a paycheck, but the high interest rates on the loan cause the individual to pay more money, which results in another payday loan. The cycle continues to grow until the debts are high and the individual is stuck in a bad situation. Getting free of PDL debt results in better finances over time.

Instructions

1

Look up the state PDL laws. Every state has different laws regarding PDLs and that means that actions can differ depending on the state. For example, if a state law declares that online PDLs are not legal, any resident of that state who took out an online PDL is dealing with illegal lenders and can take action against the lender.

2

Check the PDL companies for legality. According to Debt Consolidation Care, PDLs given by companies that are not legal in the state do not have the same power as PDLs that are legal according to the state. The most common illegal PDLs are online, where the lender might be legal in one state, but are not licensed in other states. If a lender is providing illegal loans, the individual that took out the loan has options. Debt Consolidation Care states that anyone whose taken out a PDL through an illegal source is only required to pay back principal.

3

Talk to the lender about the situation and see if he can offer a payment plan. There are situations where paying the money back in full is not an option, such as pay cuts or job loss. Ask the lender about extended payment plans and whether the firm can set one up for you.

4

Look at help options. PDLs are short-term loans with high interest rates. Help options like consolidation are available, but try avoiding these options until you talk to the lender personally. If the PDL lender will not allow an extended plan, getting help from a consolidation company or similar debt help program will often settle the problem. Take care when selecting a help program and look into the company before using their help.