what will happen if i default on internet payday loans?

Question by hutsontl@sbcglobal.net: what will happen if i default on internet payday loans?
I live in Texas and have several internet payday loans that i cant continue to make the interest payment on anymore. Will these companies allow me to make other payment arrangements? Each loan is for $ 400.00 and i have 5 of them. The interest on each loan is $ 240.00 per month for a total of $ 1200.00 per month. I cant make these kind of payments anymore but could pay $ 100.00 per month on each loan. Do you think they would accept this kind of payment. How do i get them to quit ACH my checking account? Will they try to garnish my wages? Will they contact my references that i had to give them? HELP!! Lots of questions!!

Best answer:

Answer by dcgirl
These companies are notoriously hard to deal with when you get behind in your payments. It does not hurt to contact them and see if you can work out other payment arrangements but in general, they don’t budge. They will definitely garnish your wages if you get too far in arrears and they’ll be very aggressive about taking you to collections. They’re worse than credit card companies.

If you have anything you can sell to come up with the full amount due, do that now, no matter how much it hurts. Every month you wait costs you $ 1200. You can live without your TV for a few months if it comes to that but if you let that hole get deeper and deeper, you might end up with a bankruptcy. If you can borrow money from relatives, do that. Take a short-term second job. Any way you can pay them off will be worth it even if it means you lose a lot of sleep or part with your posessions for a while.

Do not, not, not, NOT get a title loan if you own your car. You’d be just moving the trouble from one company to another. Car title loan companies are also horrible to work with if you get behind and the interest and fees on these loans (like the payday loans) is highway robbery.

I’m sorry you’re in this situation. You’ve gotten in over your head with a company whose greatest source of revenue is late fees and high interest. The only way out is pay them off, no matter what it takes.

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