If you got a payday loan, you’ve probably realized pretty quickly that you’re going to be in big financial trouble. The loan is probably deducted from your bank account along with some crazy interest rate that keeps you from ever repaying the loan. This happened to me and I was able to get out of debt using a trick not many people know about.
Foreign Loan Company:
Not many people seem to know about this. Find out where the loan company is based. If you got a payday loan from a company that isn’t based in the U.S., and they are making automatic debits from your bank account, you can close your bank account and get a new one. There’s nothing they can legally do to make you pay. I closed my bank account and reopened another at the same bank. Nothing appeared on my credit report and I got immediate financial relief. You may feel bad about doing this, but seriously at the rate of interest they charge, you have probably repaid your loan many times over. Don’t feel bad for even two seconds. These companies are rip off artists that pray on college kids, single parents, and poor people.
U.S. Loan Company:
I’m not talking about a legit bank loan here, I’m talking specifically about payday loans with insane interest rates. If the company is a U.S. based payday loan company, you can use the same trick. It would make the crazy payments come to a stop. You could then negotiate with the company to pay only the initial balance. You now have the upper hand and they will take what they can get. These companies are absolutely greedy and aren’t accustomed to people who say, enough is enough. Many people feel locked in to the payday loan cycle. If you do this, make sure to get it in writing and make sure they include that your credit will not be affected.
Is it a complete headache to close your bank account? Oh, absolutely! If you have automatic debits for bills, you will have to call each company and give your new account number. It isn’t a fun experience by any means. However, it’s much more of a headache trying to juggle crazy interest rates, this payday loan’s due date, that payday loan’s due date etc.. Usually, people get one payday loan and then another to cover the first one, and the cycle goes on and on, until you are broke. The headache of changing your bank account is nothing compared to what you’ve been dealing with.
Learn Your Lesson:
Learn from this experience and never get a payday loan again. It’s like throwing money in the trash can. I know that when I got mine, it was because I was facing a serious financial emergency and I thought I could just pay it back, no problem. If you’re already having financial difficulty, then adding another bill each payday isn’t going to help. It may help this week, but next week and the week after, you’re going to be in serious trouble.
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