How to Negotiate Defaulted Payday Loans

Turning to a payday loan in hard times is an option that many people take. A payday loan is also known as a cash advance, and is offered all over the country, via a local business or over the internet. However, it can be easy to get caught up in the cycle of repeat payday loans once you have accumulated many finance charges. Follow these steps if you want to negotiate with your defaulted payday lenders to settle your bill.

Instructions

1

Do not avoid collection calls from the lender. They will only continue, and talking to your payday lender can help you resolve the issue. Your lender may offer to let you put a promise of a payment onto your account, meaning you can start making payments at a later date.

2

Know the laws in your state. Every state will have different rules and regulations about how payday lenders operate. For example, there are limits to how much interest a payday lender can charge, which your lender may have broken. If this is the case, you may be able to negotiate your repayment terms.

3

Offer to set up a payment plan with your lender. You may not be able to pay the balance of your loan amount right away, but many lenders would rather see you make good on a payment plan rather then send you to collections. Again, many states are required by law to accept a payment plan for defaulted payday loans. Ask to speak to a manager or the owner of the company you are dealing with.

4

Speak to the collection agency that is in charge of your defaulted payday loan, if the lender has turned you in to one already. They may be willing to settle your payday debt for one lump sum, often at a discounted rate. Or, you may be able to make payments on the sum you owe.

5

Consider consolidating your debt, including payday loans, into one payment. This will allow you to settle your payday loan debt easier, and will make your lenders happy. Look for debt settlement companies that specialize in payday loans either on the internet or in your local phone book.