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Trapped In Payday Loan Debt?
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Trapped In Payday Loan Debt?

Did you know there are millions of people that are stuck in the payday loan trap?

First - What Is A Payday Loan?

Right now many folks do not have the financial resources available to them when something out of the blue pops up – this could be an unexpected car repair bill – medical emergency – or just flat out short of cash at the end of the month – like my friend use to say “There is too much month at the end of the money”.

And when these financial surprises pop up many people cannot get a traditional short term loan – they just don’t have the credit rating – and/or the collateral to support the loan.

Many cannot go to friends or family – because and unfortunately they are in the same financial boat as everyone else.

So what do you do? Well you go to a legalized loan shark – and get a payday loan. Sure they sound great – with a few signatures you can have the cash you need within minutes.

And then that’s when many people get caught in the payday loan trap.

You see most if not all people do not read the fine print – all they want is the money – so all they care about is what and where do I sign – give me the cash.

So What Is The Payday Loan Trap?

Well here’s a great example – a while back a man named Peter (not his real name) called me and was freaking out about how he was going to pay off his payday loans (he had more than one – most people do).

He needed cash so he got a $500 payday loan – he knew that he would have to pay back $650 in two weeks – this included all the fees and interest. But you see his work had slowed down and he did not have the same amount of hours as he usually had so when the due date for the loan rolled around his paycheck was not big enough.

Like many people he was provided the option of rolling the loan over – basically what happens is the loan company will extend the loan for two more weeks as long as you pay the outstanding fees and interest – so that’s $150 – plus a rollover fee of $35.

Well he didn't have the money to pay the loan off so this was his only alternative – so he rolled his loan over. Thus begins in many cases the slippery slope.

Worked stayed slow he rolled his loan over again – then his truck needed repairs – so he went out and got another payday loan so he could get his truck fixed.

Now he has two payday loans – so now he has two loans each due in full every two weeks – he does not have the money to pay them off so he has to roll them over.

The fees and interest are adding up – he even went and got another loan to help pay off the first loan – but he has had to roll that new loan over – and he sees no end in sight. Works not picking up and even if it does he will not have the money to pay off all the loans.

Now he is getting phone calls – he is behind on other bills – and he is freaking out!

Unfortunately I hear this story everyday – they just needed a little cash to get over a hump and then one thing leads to another and boom they are caught in this trap.

Well after I got him calmed down I told him there is a solution to end all of this – you simply have to contact a payday loan consolidation company and they will take care of everything.

They will contact all of your lenders and negotiate a new re-payment plan – one that involves you making just one payment each month – and this payment will be a lot less than all the payments that you’re making now.

And your schedule will either be over 6, 12 or 18 months.

They will stop all the interest and fees – and all the phone calls you’re getting will end as well.

There are only two things you have to do? You have to call the payday loan consolidation company today to end you payday loan debt– and promise me you will never get another payday loan no matter what.

Well I’m happy to report Peter is free from the payday loan companies and he has never gotten another payday loan.

Street Talk

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