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How do you get out from under payday loans? and then having to turn around to get another to come up with the money the last one shorted you?

we recently have not had any money my husband works and i work but it's still not enough we are stuck underneath these ppl it's ridiculous you have to constantly borrow more money after you paid one off to make up what your short and it's a never ending thing how do you get out from under this without claiming bankruptcy?

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Anonymous

Asked by Anonymous at 2:46 PM on Nov. 9, 2009 in Money & Work

Answers (9)
  • You can't, that's how they get you.
    jenree33

    Answer by jenree33 at 2:55 PM on Nov. 9, 2009

  • First you STOP borrowing more money from them.

    How long do you have to pay them back? Do they charge you interest? Did you put anything up for collateral?
    Gealach

    Answer by Gealach at 2:58 PM on Nov. 9, 2009

  • If both of you work and you still are having a hard time paying your bills, you need to look at what is coming in verses what is going out. Cut out all unneeded expenses, carry your lunch instead of buying out etc.. will help. It is a trap, the only thing you can do is pay them off and DONT GO BACK. But if you don't cut down your spending the cycle will continue. For a week or two you will be really broke, sell something to recover but dont borrow any money meaning no pawnshops etc. It is just digging you deeper..
    midnightmoma

    Answer by midnightmoma at 3:04 PM on Nov. 9, 2009

  • I think it depends on the kind of bills you are using these pay loans for. There is always a way. It might be very hard though for a few months, but worth it. Obviously I don't know the amount of bills or your current lifestyle, but I would look into the the items that are purchased like food, entertainment, clothing, toys for kids etc. I would cut back on whatever you can, if you have cable cut that off and maybe just go to a redbox to rent a movie or two a week, use coupons for food, cook at home, Things like that, it can really help, save you a least 100 a month. If that is not helping enough, look at some of the things you have in your home that you don't need/want and maybe sell it on craigslist.org to come up with some extra money to get you out of the payday loans. I hope this helps some
    Borikaos

    Answer by Borikaos at 3:09 PM on Nov. 9, 2009

  • You don't have to take the loan. You know the terms and there is high interest involved. Not like they held a gun to your head. You did this no one made you do it. When we had tough times we cut out cable, internet, phone, only ate at home and we only bought what was absolutely needed and avoided wants. I learned to make my own laundry soap and learned to make many other homemade items. It wasn't easy but we are debt free now and live very well. We knew taking a payday loan was a dumb thing to do and sucked it up.
    Anonymous

    Answer by Anonymous at 3:52 PM on Nov. 9, 2009

  • Definitely agree with the above posters.
    Have a garage sale, use ebay and/or craigslist and com up with a little extra cash that way.
    Get on a written budget. I bet there is money slipping through the cracks that you haven't seen yet.
    STOP borrowing. It would be better for you to pay a bill late than to continue paying interest to a payday loan company.

    Check out the Dave Ramsey group on cafemom for more helpful information.
    GOOD LUCK!
    Anonymous

    Answer by Anonymous at 3:52 PM on Nov. 9, 2009

  • I would suggest trying to borrow $50 or $100 less each time you go in until the loan is paid off. They are meant to be a one-time loan, but the rules make it pretty easy to get in a cycle of continuous borrowing. I used to work for one of those loan places.

    I agree with other posters that it makes sense to cut out every expense you don't need - home phone if you have cell phones, cable, magazine subscriptions. Then turn around and put those savings into paying off the loan.
    lvpenguino

    Answer by lvpenguino at 4:12 PM on Nov. 9, 2009

  • Can you hold out until tax season? That would be the best way to pay them off and NEVER take another one again. Otherwise, I would try to borrow the money from a family member and promise never to take one out again.
    Anonymous

    Answer by Anonymous at 6:52 PM on Nov. 9, 2009

  • My mom works for one of these dreadful companies. She, herself, is stuck in one of these vicious cycles too. The only way out is to go in and talk with them. If you only pay the one time interest, ask if you can set up a payment plan. I know my mom does this for a lot of people. That way you dont have to pay back in full therefore shorting yourself. Maybe $20/week until its paid.
    Auntiemom410

    Answer by Auntiemom410 at 11:56 AM on Nov. 10, 2009

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