Getting Out of Payday Loan Debt
OK, let’s say that for whatever reason, you have found yourself in a payday load debt trap. Here are some things that you can do to try to get out of it and get your finances back in order. Laws vary from state to state so some methods will not be available to you.
1) Extended Payment Plans
Many states require lenders to offer borrowers extended payment plans. This would allow you to break the loan up into smaller and much easier to handle payments. If your state requires lenders to offer these programs, you should contact them directly and ask to set one up.
If your state does not have this requirement, you still may be able to contact your lender and ask for one. Some may take the payment plan over the risk of you defaulting on a loan. In addition, some lenders are part of lending associations that mandate a set of best practices. This includes lenders offering payment plans.
2) Talk To State Regulators
If communication is difficult with your lender, you can always file a complaint with the agency in your state that handles payday loans. They may be able to settle a dispute between both parties and if the lender is not licensed in your state, they may be able to eliminate some of the debt completely. Here is who you should contact by state. If your state is not on here, payday loans are limited in your state.
State Banking Department
P.O. Box 4600 Montgomery AL 36103
Alaska Division of Banking and Securities
P.O. Box 110807 Juneau AK 99811
California Department of Corporations
1515 K Street, Suite 200 Sacramento CA 95814
Delaware Office of the State Bank Commissioner
555 E. Loockerman Street Suite 210 Dover DE 19901
Florida Office of Financial Regulation
200 E. Gaines Street Tallahassee FL 32399
Hawaii Department of Commerce and Consumer Affairs Address
335 Merchant Street, Honolulu, Hawaii 96813
Idaho Department of Finance
800 Park Blvd., Suite 200, Boise ID 83712
Illinois Division of Financial Institutions Address
320 West Washington, 3rd Floor, Springfield, IL 62786
Indiana Department of Financial Institutions Address
30 South Meridian Street, Suite 300 Indianapolis IN 46204
Iowa Division of Banking
200 East Grand Avenue, Suite 300 Des Moines IA 50309
Office of the State Bank Commissioner
700 SW Jackson, Suite 300 Topeka KS 66603
Kentucky Office of Financial Institutions
1025 Capital Center Drive, Suite 200 Frankfort KY 40601
Louisiana Office of Financial Institutions
P.O. Box 94095 Baton Rouge LA 70804
Department of Insurance and Financial Services
P.O. Box 30220 Lansing MI 48909
Minnesota Department of Commerce
85 7th Place East, Suite 500 St. Paul MN 55101
Mississippi Department of Banking and Consumer Finance
P.O. Box 12129 Jackson, MS 39236-2129
Missouri Division of Finance Address
P. O. Box 716 301 W. High Street Jefferson City MO 65102
Nebraska Department of Banking & Finance
1526 K Street, Suite 300, Lincoln, NE 68508-2732
Nevada Financial Institutions Division
2785 E. Desert Inn Rd., Suite 180 Las Vegas NV 89121
New Mexico Financial Institutions Division
2550 Cerrillos Road, 3rd Floor Santa Fe NM 87505
North Dakota Department of Financial Institutions
2000 Schafer Street, Suite G Bismarck ND 58501
Ohio Division of Financial Institutions
77 South High Street, 21st Floor Columbus OH 43215
Oklahoma Department of Consumer Credit
3615 NW 56th Street, Suite 240, Oklahoma City, Oklahoma 73112-4512
Rhode Island Department of Business Regulation
1511 Pontiac Ave, Cranston, RI 02920
South Carolina State Board of Financial Institutions
3rd Floor, Edgar Brown Building 1205 Pendleton St., Columbia, SC 29201
Tennessee Department of Financial Institutions
312 Rosa L. Parks Avenue, 26th Floor Nashville, TN 37243
Texas Office of Consumer Credit Commissioner
2601 N. Lamar Blvd., Austin, TX 78705
Utah Department of Financial Institutions
324 South State Street, Suite 201 Salt Lake City UT 84111
Virginia Bureau of Financial Institutions
8th floor, 1300 East Main Street, Suite 800, Richmond VA 23219
Washington Department of Financial Institutions
PO Box 41200 Olympia WA 98504
Wisconsin Department of Financial Institutions
P.O. Box 8041 Madison WI 53708
Wyoming Division of Banking
3rd Floor, 122 West 25th Street, Cheyenne, WY 82002
3) Make Sure The Loan Is Legal
Payday loans are not available in every state and they are heavily regulated in most. Online lenders, whether by mistake or on purpose, do not always follow state rules. Make sure that the loan that you have taken is actually legal. If not, you will still need to pay off the principal but you may be able to eliminate the fees that the lender charged you.
4) Alternative Ways To Pay Off Loans
If all else fails, you can always pay off your payday loan with other types of financing or by making additional money. Here are some sources to consider.
Friends & Family
Probably the best source of money. A loan from family or friends can help you pay off or down your payday loan. Nothing can beat a free loan if you have the means to get one. The only downside is having to reveal money problems to the ones you love but these are the people most likely to want to help anyway.
There may be ways to cut expenses in order to free up the money to pay off your cash advances. Look at your budget and see where cuts can be made and if you are in need, look to programs that can assist you. There may be, for example, housing programs that offer money for single moms or other groups. You do not know unless you search.
See what you can do without around you. Old jewelry, video games, an apple watch or other high tech piece of electronics. If you are in a money crisis, there is no room for such luxuries.
Banks & Credit Unions
If your credit has improved since you took out a payday loan, perhaps you could get a traditional installment loan to pay off your payday loan. It never hurts to check, so it may be in your best interest to apply at a few locations.
A good credit counselor could help you find the money to pay off a loan in your budget. This might involve cutting other expenses such as cable or internet. It could also mean possibly finding a cheaper place to live or a cheaper car to drive. Big debt requires big changes to get back on track.
Part Time Work
Just a few extra hours a week can make a world of difference. Even major retailers like Walmart can be a great source of extra money. They now offer starting salaries of over $13 an hour, so just one shift a week could earn you an easy 400 dollars a month. Money that could help you eliminate payday loans.
So, obviously, the way to be out of payday loan debt is to use these loans responsibly in the first place. Far too many loans are used for non essential and non emergency items like cell phone bills or other non crucial expenses.. It is best to do without rather than take out a high interest loan. In addition, you must consider what your next paycheck will be like if you take out a payday loan. Take your usual check and subtract the repayment amount. Can you live on that? If not, taking out a payday loan is a very bad idea.
Having said that, you do have options. Just be sure to address the problem head on and make some changes.