So.. yeah, don't want to get to detailed. Hubby and I have been married uh... twentyfive years. Been working, raising kids. (four kids, oldest is twenty three.. youngest is fourteen). blah, blah..
So, somehow, (and don't ask,YES, we know it was stupid, we realize NOW that it was not the best decision we have ever made) We ended up with payday loans.
We have income, both of us, we pay bills, we have monthly living expenses, house, electric, insurance. Etc. we have a van that is paid off.
He drives a motorcycle that he has to set the "trip monitor" to tell him when to buy gas, we pay for health insurance, car insurance, student loans, electric, water, and internet..... we have it covered. No public assistance, or welfare. Just work.
Work, get paid, pay bills.. repeat.
BARELY.. that is the truth. Without any help. We are like many people, whether they believe it or not, we are maybe two paychecks away from being "dead broke" .
for those of you who might suggest, why don't we get rid of internet...well, because we won't. We DO NOT have cable TV or any form of it, we have no other luxuries.. and Internet only costs twenty six dollars a month.
Well... anyways.. and yes, we know it is stupid, and we know it shouldn't have been done, but it was...
First it was our daughter who's performing arts troop was "invited" to sing and dance at Disneyland.. okay so yeah.. I realize NOW what a racket that is.
Then our van had a problem. etc... normal everyday things.
We were inticed by the "Payday Loan" companies... and long story short, we currently have a four hundred and a five hundred dollar payday loan. One is mine, one is my husbands.
They only let you get a percentage of your regular paycheck. (thank goodness, or our loans might have been more.)
So.. what do you do.. you take the loan, then pay the "extension fee" or the payout and get it again. Every single time you get paid, you pay out othe finanace charge, if you can't pay the whole thing. This is not something where you can pay more and have it go to pay the balance down. Nope, just the finance, and you still owe the whole balance.
. So.. in just the last year alone, we have paid out over thirty five hundred dollars, and none of that ment anything, not on the pricipal, there is not opition to do that. You must just pay the "finance charge" to roll it over for another pay period.
Tell me, who can afford eighty percent of their total paycheck, even for a month, to payout the loan and not have it anymore? Not the people desperate enough to take the loan in the first place...
But that is not what this is about. I heard on the radio of a company that would loan you enough to payout your payday loans, then you would just pay the loan payment everymonth until it was paid out, for about eight months.
The payment would go to the principle, not the finance charge.
So I called, and was excited, because I want to have less to pay, but after a year of this.....
Anyways... the company said I could get the loan, could pay off the payday loans... etc.. it sounded great.
THEN.... when I called back to really finalize it..
They told me of extra fees (to be paid up front) then that I needed to either stop payment on the checks from the payday loan, or close the account. (instead of paying the payday loan)
This didn't sound right. How would it ever help my credit to pay off these people, if I was closing accounts, and stopping payment.
The truth is, it wouldn't, and they do not PAY OFF your payday loans.. They wait until the company has not recieved payment from a check, after you have defaulted on a loan, then they try to "buy out" or "settle" the loans for a lower price. That is what you pay.
It will show on your credit as defaulted, or just not paid, From the payday loan compainies, and on your credit report. It is not a loan to "Pay out" the other loans, but rather let the loans not get paid and try to clean it up later.
I am sorry.. I am not yet willing to go this route, after all, it is under a thousand dollars that we, together owe.
You might think, ask someone, family or friends. Truth is, we are the "wealthy ones" in our family. Everyone is worse off then us, and we know it, and we give thanks regulary for this.
Just, if you have these loans, don't get sucked by the promise of hope. I consider myself "smart"
. I know not to send money to the guy in Nigeria who is holding my winning lottery ticket. I know that forwarding an email to all of my friends will not save a dying boy in Florida.
It just sounded too good to be true, like the answer to my prayers, like a possitive thing to do.
Until they ask for money upfront, then there is no guarentee they can even help you.
"send the fee" then stop payment on the payday loan checks... just another scam to me.
Anyone else care to admit they have a payday loan? Can you tell me how to pay it off?