Pay Day Loan Debt
Most people have taken or thought about taking out a pay day loan. Whether it’s because you needed a little extra money for groceries or you wanted to treat yourself to something special. However, after taking out the loan, you have that terrible gut feeling that you did something wrong. That is because you just thought about the ridiculously high interest rate that you will be paying on that loan.
A month later, you have done the math and you will be paying three times the amount that you borrowed. To fix it, you take out another pay day loan. You start to borrow from Peter to pay Paul. The next thing you know, you are swimming in pay day loan collection letters.
What are my options with regards to Pay Day loans?
First you can attempt to continue to pay them off. Secondly, you can try to settle with these lenders. A number of them are willing to settle for much less than the amount owed. What you do not want to do is to forget about them and push them aside. If you do that, you will find that the debt will go through the roof due to interest.
File bankruptcy on your pay day loans
If you have been trying to pay down your pay day loans and they just don’t seem to go away, you might be able to file bankruptcy to discharge the pay day loan debt. Filing a Chapter 7 bankruptcy will discharge all of your unsecured non priority debt including pay day loans, so long as there is no fraud involved. A Chapter 13 bankruptcy is a payment plan that will help restructure all of your debt including the pay day loans. This will help you receive a discharge of the debt after 3 to 5 years of payments within your budget. Contact your local bankruptcy attorney for more information.