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payday advance

11K views 70 replies 29 participants last post by  itlw8 
#1 ·
Any ideas on how to get out of payday advance places?
 
#2 ·
Do you have anything of value you could sell to raise cash to pay off the amount??? Jewelry, TV, gaming system, vehicle - anything is better than being sucked dry by those places.


I see you're new to Frugal Village - go to the Dave Ramsey threads under the financial/ money section. We're a big community of people who are trying to become or already are debt-free, to there is a lot of collected wisdom here. Best wishes!!
 
#3 ·
I think Marys suggestion is great.

I was reading one of Suzi Ormans books and she says if you collect all of your clutter and put it in the middle of the room the value of all of that collective clutter probably equals your debt.

Try selling on Craigslist, Kajiji, or ebay depending on what it is. I have a lot of ebay experience and will be happy to help you if you need it.

Whatever you do make it first priority to get out from under that!

All the best, and welcome to the community!
 
#4 ·
How far in are you?
 
#5 ·
Do whatever you have to do (legally!) and sacrifice to the hilt to get that paid off. Don't know your circumstances, but if you have to drop cable, phone, cell, entertainment, do it! Cut your food budget to the bone, don't buy anything! Cut your electric and heat until they squeak.

Then get an extra job; minimum wage is fine. Every penny goes to the debt.

Don't be too proud to talk to friends or relatives and ask for help here. Unless you have fleeced them before, they may be willing to advance you enough to get out of the hole. Just be sure to be honest and pay them back.

Finally, no matter what the circumstance, never set foot in those payday dens again. It's not worth it.
 
#6 ·
I know people are probably going to want to stone me when I say this but my Hubby actually works for a payday loan company. Even he admits that they are evil and he would never use them. But legally there is no way to get out of paying them back even if you file bankruptcy they still won;t go away. So do whatever you have to sell things, cut back, borrow money from somebody. I never would encourage a person to borrow money from somebody but I would rather have a loan with somebody who understands with no interest then with a payday company. Good luck on your journey!
 
#20 ·
How can bankruptcy not stop a payday loan?
I have to say I am curious about this as well. I only know very little about payday loans. But speaking of this...I saw a commericial just today about how one place will just swipe your debit card and you don't have to write the checks. (because I'm pretty sure most places make you write a check to them first and you pay them back in cash only) I was thinking OMG....!
 
#10 ·
Honestly (and I admit to being ruthless about debt, especially payday loan debt), I would cut the internet, too. Use the library until you get caught up. That $2000+ is just going to keep mushrooming and squeezing you if you don't put every non-essential cent to it.
 
#11 ·
paid once a month 21oo ish
rent 540
utilities 70
payment to my dad 400 for the last time he bailed me out till 2012
cc 100
cable phone internet 140
ins 100
avoiding irs
avoiding student loan
avoiding medical
(will not open bills or answer phone to see amount)
90 medical bills

and 375 month payday loans fees
bankruptcy not option

dont want to call relatives or friends because they will be very angry and disappointed as i have been in this position before

rent one month behind
there the ugly truth
 
#12 ·
Hey, admitting it is the FIRST STEP to handling it. Is this the first time you've really faced it all??? (Although, by not opening some of them you're not totally facing them yet) Hard, scary, embarassing - all at once.

I haven't much else to offer except sympathy and prayers. And I will be praying for you.
 
#13 ·
What kind of work do you do?

You have IRS problems - this is serious. Avoiding it will only make it more serious. Consequences delayed are consequences multiplied.

So - you can do two things - cut expenses, which you're working on - and increase income.

Time to start cutting lawns, raking leaves, shoveling snow, delivering pizza and flinging boxes for UPS. You have a serious problem and it needs a serious solution. A 2nd job - a part time job - for 2 to 3 months - and you can be out of the payday loans.

That's worth it to have some peace of mind again, isn't it?
 
#39 ·
You have IRS problems - this is serious. Avoiding it will only make it more serious. Consequences delayed are consequences multiplied.
Whatever you do ...do not blow off the IRS they can be ruthless when they want to be...believe me I have witnessed it in the lives of my friends. :fence:
 
#15 ·
Sandi, I'm so sorry that you are in this position. Let's consider some facts and try some unorthodox thinking.

There is an obvious problem with spending. We don't know what it is, but you need to look at these patterns. It may be just unfortunate, such as having huge medical bills. Or it may be some poor choices, such as gambling, or spending on non-essentials. You don't need to confess all to us here on FV, but you do need to see the pattern. Ask yourself how you are going to avoid this pattern. Just as a drunk has no business hanging around a tavern, a person with a spending problem has no business hanging around stores, etc. You must work out a way to avoid the pattern, plain and simple.

Then you are going to have to look at more ways to cut expenses. Do you have children? Are you married? Do you live by yourself? Is it an option to move in with dad for a while? Or to just get a single room and not a house/apartment? If you are single that may be easier than if you are married and have kids. If you can cut out that rent, that will go a long ways to cutting the debt.

You mention that your friends and relatives will be disappointed in you. Yes, of course. Would it help if they knew that you have registered for debt counseling, or a Dave Ramsey seminar, etc? You may need to prove to them that you are serious about obtaining help and changing your ways.

Greebo is right: you must talk to the IRS before you really get pounded. And you must get more income. Social life? Not for a while. Sleep? Not for a while? I'm exaggerating of course, but you will need to change your habits and get used to doing far more work.

Sandi, your position right now is not good. But others here at FV have been in similar positions. Some refused to take advice, made excuses, and whined about everything. I doubt if those folks made much progress on the debt. Others swallowed their pride, humbled themselves, and vowed to start over again. I imagine those folks are working themselves out the hole. And if you stick around here, you'll read plenty of success stories from people just like you. So take a deep breath, and pledge that you are going to take the necessary steps to kill this debt. Keep us informed on your progress, and don't be afraid to ask for help.
 
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#16 ·
Sandi, have you called the cash advance place and asked them what you can do to pay it off? I worked for one of these places almost 10 years ago and you may be able to work something out if you ask.

I urge you to look around these threads and be as frugal as possible. It seems you have a problem spending more than you make, don't we all, and you need some serious help to not get in worse trouble than you are. You have come to the right place. (((hugs)))

Another thing I thought of: when you go back to renew drop the amount for $10 or as much as you can afford to be without and that will help you get it down faster.
 
#18 ·
i was really deep in this one time and called when of those conslidated places ..this was like 6 years ago..they had me close the checking account and start a new one and they made the payments...if i hadnt gotten stumped with huge medical bills a year later i would have paid it off that way and it was affordable...they were helpful when i couldnt pay and the calls stopped immediately..but we ended up in a ch 13 and included them in that

those payday places are MEAN when they call just nasty nasty
 
#23 ·
Just because the language is in the contract doesn't make it valid. If I made a loan to you and the loan paperwork included the clause, "If borrower fails to repay loan in a timely fashion, lender may choose to instruct borrower to terminate borrowers life. Upon receipt of such instruction, borrower will immediately terminate their own life in an orderly manner. Borrower will be responsible for all burial costs."

You could sign that, doesn't make it legal.
 
#24 ·
Those places are EVIL.........my bil did it more then once. To the point where he couldn't pay the car payment or rent. I would never take one out. They want to much back for what they give you......... Listen to everyone here. They are pretty smart.
Fern
 
#25 ·
Well when a contract is made by lawyers it is a valid contract when you sign it. I came on here to give advise from what is in the contract from my husband's company that nobody has every gotten out of in the last 2 years my husband he has worked there. But since everybody wants to pick on me instead of dealing with the issue I will keep by mouth shut and let everybody attack somebody else.
 
#27 ·
Well when a contract is made by lawyers it is a valid contract when you sign it.
Not necessarily - that remains for the courts to decide.

I came on here to give advise from what is in the contract from my husband's company that nobody has every gotten out of in the last 2 years my husband he has worked there.
In Maryland Real Estate, there are laws about what may and may not be included in a lease agreement. If I put something that the state forbids in a lease, I can not trump state law - even if my lawyer draws up the lease.

My sole point was simply that just because it's in a contract, it's not necessarily legitimate. One should consult with an attorney with expertise in bankruptcy in the state in question to be sure whether something can or can not be included.

But since everybody wants to pick on me instead of dealing with the issue I will keep by mouth shut and let everybody attack somebody else.
Nobody has attacked you or picked on you. Stop being melodramatic.
 
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#26 ·
As a teacher you have a couple of things going for you....

People will trust you, don't blow that and it will help.

Can you volunteer for an extra class next semester? I know that if a junior high /high school teacher teaches an extra class...there is extra money. Also, if you "volunteer" for a club, you will be paid for that. If you are a primary teacher you might see if you can walk over to the other school and get involved with a club.

Also, I have seen ads on Craig's list for aftercare teachers who taught crafts or other subjects for $50 an hour. Maybe only 3-5 hours a week, but that is a good return for your time. (of course as a teacher you know there is planning etc, outside of that)

If that income is 10 month pay, you MUST plan for summer. This is a huge problem for teachers, I think.

To get out the payday loan, I would suggest seeing if you can get a one month forbearence from your father and the CCs. Since you are already behind in rent, that must be paid. Cut the utilities to the bone and make a partial payment (so that it registers that you did pay something). Get an Angel Food Box for the month ($30) and then make your food budget an additional $30. Get a food box from a pantry if you need to...

Those methods are for one month only. It is robbing Peter to pay Paul but Paul has a knife to your neck. Next month would be making the extra payment to your father, the cc's and the utilities.

Sell anything you can, and get a few part-time gigs... I like my part-time job, doesn't pay a bunch but it isn't difficult (look into ARC).

Can't you get a payroll advance from work? I know that the last three places I worked at would do that. No interest.

If you can do the one drastic month, with selling stuff etc. find $1400, get a school payroll advance of $800 (pay back at $100 over the next eight months), then you would be out of the knife wielding payroll advance people, and in a month or so be settled into a more secure spot.

I would still be doing all the extra to find work. Tutoring, clubs, extra classes. Even babysitting over Christmas break. Or if you have malls near you, work the Christmas rush.
 
#28 ·
Nobody has attacked you or picked on you. Stop being melodramatic.[/QUOTE]


After you stop being a horses ass.
 
#29 ·
Can we all play nice and help the OP?
We don't know what is in HER payday advance contract and she is not applying for bankruptcy. Right now it seems to be a bit of a red herring. Let's not waste our time and wisdom and help her....
 
#30 ·
JoJo I'm not gonna play nasty with you - but you came into the thread defensively - you started out expecting people to hate you cause of where your husband works. I'm sorry if you feel disappointed that nobody has bashed you for that.

But still - nobody has picked on you, insulted you, slammed you, or anything else but asked questions about your statement about bankruptcy and payday loans.

The OP is in Nevada. You are in Philly. Presumably your husband is in Philly too. The laws vary by state, and not all contracts are upheld in court, even when prepared by lawyers, and those are the ONLY points that have been made - not one of them personal about you.
 
#31 ·
Yes we live in the PHilly area and he works in the philly area but the company is not based in Philly. He works for a company that has many of these pay day loan companies and the employees work in Philly but every company is based in a different city and state. They are now starting to transfer them all to an Indian reserve so they don't have to follow normal laws of the state. Yes they are shady and not good to deal with at all but to think you can get out of it is not realistic. If a person had to borrow $200-$1000 dollars because they didn't have the money how will they pay for an attorney? If you file bankruptcy and don't have the money to pay them they will keep putting fees on you and one day you will have the money and they will get you for it because of the contract. A contract when made up by an attorney is legally bidding especially because with his company they explain everything to you before you sign it and get your money and there calls are all recorded. If you agree to something and then sign it you really don't have an out.
 
#32 ·
http://www.paydayloanaffiliate.com/blog/Chapter7BankruptcyAndPaydayLoans.aspx

http://wiki.answers.com/Q/If_you_file_bankruptcy_can_you_include_payday_loans

If you file bankruptcy can you include payday loans?

Here's the thing - Loans made within a short period (say a year or two, but certainly 90 days) of Bankruptcy generally aren't included, as they are considered taken in anticipation of BK, so you won't get relief. Payday loans are written in such a way that they actually renew every 30 days or so...and are entirely new loans...getting entirely new fee's etc. This is one of the main ways they get much higher than stated interest rates and these things can grow so large, so fast. Hence, they also really can't be discharged in BK.

However, a number of Judges/Courts, because of the abusive nature of Payday loans (and bad press...actions to control them), are simply looking through that and allowing them based on the "original" date that started the daisy chain of loans. It just sort of depends on your presentation....and the specific court your in. Even where a judge does allow it...the loan company can and will protest...and they do have a good firm legal case....but hopefully this can at least be resolved favorably for you.
http://www.paydayloanaffiliate.com/blog/Chapter7BankruptcyAndPaydayLoans.aspx
Your Bankruptcy

Payday loans are often times very hard to pay off. This really only makes things worse. Sometimes you will sign a contract with a payday loan company that says you cannot include this debt in any bankruptcy you may have. But you should know that this is a clause that cannot actually be enforced by a payday loan company. The truth is that this cause is close to illegal. This is why you need to make sure you undertake any bankruptcy with a highly skilled lawyer. Experienced lawyer will know that you can, in fact, include payday loans in your bankruptcy. Payday loan companies put that clause in a contract because they really want you to pay back in a timely manner. This is the way that they make their money. So know that you are able to put your payday loan on a bankruptcy, but only look into bankruptcy if it is your last option.
Emphasis mine.

I'm sorry, JoJo, but you and/or your husband are misinformed.

Just having an attorney draw up a contract is NOT necessarily sufficient to make it binding. Contracts must pass certain tests - they must not be trifling, indeterminate, impossible or illegal (Wikipedia), for starters. If you and I signed an employment agreement, for example, and you agreed to work for less than minimum wage and not get unemployment if I fired you, such a contract would be illegal, because the terms of the contract go against state law.

Now a GOOD lawyer won't draw up an illegal contract - but Payday loans aren't exactly known for their ethical practices, are they?
 
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