Payday loan debt relief
The Payday loan settlement process is comparable to clearing up credit card debt. It could take up to 2 to 4 years for the process to be finished completely. Under some circumstances, such as the age of the debt, the delinquency of the debt, and your financial hardship, surrounding your debt it might be able to settle your payday loans for an amount that could be as little as 50 percent.
Most Payday loan debt relief companies are usually willing to settle the debt if you let them know that you are thinking about filing for bankruptcy. They would prefer to gain some money than not to get any money at all.
How to negotiate a Payday loan debt settlement
1. Figure out whom to contact
You will need to check the newest notice that you have received to see if you contact the lending company or the collection agency that is assigned to the case. It is important that you contact the correct person when you want to try to work out a settlement on your payday loans. By contacting the wrong person, you are just setting yourself up for a lot of aggravation and headaches. You will also get the run around about who you need to talk to and how to get a hold of them. It will be a lot of playing phone tag to get to the correct person.
2. Decide how you want to settle your payday loans off
You have two choices when it comes to negotiating your payday loan debt. You can work to settle your payday loans debt yourself or you can hire a company to work on your Payday loan debt settlement for you. If you decide to work on the Payday loan debt settlement on your own you will be able to stay away from the fees that are charged by the debt settlement company. This will usually save you somewhere between 15 percent and 25 percent of the debt. Payday loan debt settlement companies have the expertise that is important when going into negotiations for you and your settlement. This is the expertise that you most likely do not have on your own.
3. Make a plan to come out ahead
A Payday loan debt settlement should fundamentally save you money. This is what your goal should be from the start of the process. Before you do anything, you should figure out how much money you can spend towards your Payday loan debt settlement. Remember to make this amount something that you can financially afford to pay without cutting into your monthly expenses. Whether it is in the form of a lump-sum payment or on monthly payments. If you decide to use a Payday loan debt settlement company you will want to calculate in their fees and any federal taxes on any portion that is not forgiven in the settlement.
4. Time to begin negotiations
When beginning Payday loan debt settlement negotiations remember that chances are that the creditor will most likely counter your first settlement proposal. That does not necessarily mean that they will not negotiate to get to a settlement. It just means that they are going to work harder to get more money from the negotiations. Negotiations could take a while depending on your original offer and the creditor’s counter offer. Do not accept any offer that you cannot afford to pay. That would be counterproductive in your ability to make the payment.
5. Get the agreement in writing
When an agreement is finalized make sure that you get it in writing. This should be done through a signed Payday loan debt settlement agreement letter. This is a form of protection for you in case of a dispute about the amount. This signed letter makes the whole settlement agreement enforceable. Make sure that you hold on to this letter for a couple years in case you should need it. It could come in handy in case of a legal action that they may take or that you may need to take.
Payday loan debt
Payday loan debts can be settled in the same manner as any other unsecured debt, such as credit cards, depending on your situation and financial security. Just make sure that you weigh the risk of having the payday loan and defaulting on it. You will also want to weigh the risk of how to go about taking care of the Payday loan debt settlement. Late payments and debt settlement payment will lower your credit score by 65 to 125 points when they are added to your credit history.
The lender can still sue for repayment of the full amount of the original loan if they decide that they want to. That is if the statute of limitations for collections is still open. That time frame is from three to ten years in most states. You will need to check this limitation for your state before you do anything. There is one important matter that you might want to keep in mind. The creditor does not have any legal obligation to accept the settlement. A lot of the creditors will only accept about 10 percent of the offers for settlement that they receive.
Once you have a payday loan you have the responsibility to repay that loan in a timely manner and in full. If you do not repay this loan then your case will get sent to collections. Once in collections, you will have to try to negotiate a payday loan settlement agreement. You can choose to do this alone or with the help of a company. You need to take into consideration that there are risks and that it will affect your credit score. This company will help provide you with your existing payday loan debt. Go to National Payday Loan Relief for assistance with getting a proper Payday loan debt settlement. They will work with you through the whole process so you do not have to worry.