Can i get out of the payday loan cycle?

i am in a horrible cycle of payday advances. with fees, i owe 1650.00. I am paying around $600 per month in interest only! My income has improved quite a bit since taking out the loans...but i cannot get caught up with all of these payments. I was thinking about calling my 'regular' creditors and asking if i can pay them a lot less this month then pay my payday loans way down, if not off. Will this work?


Thank you!

Can i get out of the payday loan cycle?
When you take out a pay day loan from a legitimate lender, your limit is set (usually to 25% of your monthly income) at that time. That limit is based on proven and common sense reasons for making certain that you are not loaning beyond your means.





If you are over your head with a legitimate lender (most of them are CFSA members), then there are easy, no additional fee, payment plans by which you can pay your loans off.





Also, legitimate lenders, by CFSA rules and regs, will not/can not, practice intimidating or unfair collections, nor can they take you to court. It is in their agreement of honor with you, and their choice of risk, that it is your honorable agreement to pay back the loan that they gave you. The APR that you are quoted is required by government, and it truly is not the reality on a short term payday loan, since what it really is, is a fat fee (like $15 on a $100 loan), plus a one time return check fee (maybe $25) if your check returned for insufficient funds. THERE IS NO INTEREST.





That is cheap, and pretty reasonable to negotiate with, compared to the fees, penalties and interest of traditional banks.





If you take that amount out at one lender then go to another lender and take it out again, then you have personally, by your own choice, loaned beyond the reasonable means to pay the loan(s) back.





Don't blame the lender(s) for the consequences of your own choices. Unfortunately, that seems to be the trend, lately, to blame someone else for your own choices.





You should never carry payday loans from more than one pay day lender at a time. They do not have a magical system by which to know if you already have a loan out with another lender.






Reply:At my company we like for you to come in for a chat over coffee and donuts





We like to stretch out your loan so you can pay less each month and also offer bridge loans to help you even more





We also like to include in a little Mad Money as part of any bridge loan, because we know how stressed out you feel, so, for example, a big screen tv would make you feel better





I am sure the company you work with feels the same way, because you are in a financial predicament through no fault of your own






Reply:Wow trust me I have been caught up in the whole payday loan thing, it can ruin you! I am all for payday loans if you can afford to pay it back. However if you over borrow it will put you in a financial hole that is almost impossible to get out of. You can see if your regular creditors will allow you to make smaller payments or postpone them until you get the payday loan payed off. If you are in good standings with them they should be more than willing to work with you. But in my honest opinion once you get out you should create a budget and stick to and don't fall back into that hole again, there are people whose entire income goes to payday loan centers, and they get so caught up in borrowing then re paying, then borrowing again just to live off of. they are great for people that need them. If you have to sacrifice a paycheck to do without then pay them off and be done with it, you may notice you have a lot more free money when you add up how much you were wasting paying on interest that is not actually applied to you balance, it really adds up.
Reply:If you are upfront with your creditors, they may cut you some slack for a month...so long as you make it up to them as soon as you get this payday loan crap taken care of.





You might even be able to skip some payments and take the hit to your credit score just to get out of this mess. I know this is bad credit advice, but you won't get anywhere paying 12 million percent interest to some payday loan outfit.





In 12 months, those late payments won't even be that big of a deal.
Reply:Go to the bank where you do business and ask them for a loan so you can pay this vicious cycle debt off. If you have been there several years with no problems they MAY consider it with a direct debit from your checking each month.





Then go get a second job, I know you do not even want to contemplate that, and work it long enough to put every dime toward ALL your debt and get rid of it.





If the creditors will accept your plan that is fine but get it in WRITING before paying less or late.





Good Luck
Reply:you could try it... but you should also look into a consolidation loan, i bet the interest would be lower and you could talk to a bank about making payments
Reply:the best thing i can think of is 2 pay yourself 1'st when u get your pay. cut out stuff u really don't need, %26amp; put away that $$$ in a savings acct.





Best Wishes!!!