Having Trouble Settling Your Payday Loan? DoNotPay to The Rescue
Payday installment loans can solve your immediate financial problems, but the skyrocketing interest rates will plunge you further into debt. You desperately wonder: will payday loans settle in your favor?
Can I Stop Paying My Payday Loan Right Now?
Keep in mind that a payday loan is still just a type of installment loan. According to NerdWallet, it only takes an average of 30 days for a personal loan to go into default. Failure to pay back a loan can have serious consequences:
- Extra interest, insufficient fund fees, and penalties will be added to the loan amount.
- Your loan might be sold to a debt collector. Debt collectors often rely on more aggressive repayment tactics like repeated phone calls, court summons, and even threats of jail time.
- Other lenders will be hesitant to approve you for another loan.
- Your credit score will continue to drop as past due payments add up.
Even if you settle your payday loan, you 'll still knock some points off your credit score. Unpaid accounts can stay on your credit report for up to seven years, depending on how much you owe.
However, a settled account still looks much better on your credit report compared to a defaulted loan. It shows lenders that you were committed to solving the problem instead of evading repayment. A s a result, it's easier to rebuild your credit quickly after settling a payday loan.
Can You Settle a Payday Loan By Yourself?
To settle a payday loan, you'll often have to work directly with the lender through this process:
- Determine a lump sum that you can afford to hand over to the lender in the immediate future.
- Get the lender or collection agency's contact information from your last payment notice.
- Submit your proposal to your lender or collection agency. There's a good chance that your offer will be countered, and negotiations could drag on for a while.
- If you eventually reach an agreement, get a signed debt settlement agreement letter to make it official.
This process can be a headache for several reasons. If you 've already defaulted on a payday loan, it's very unlikely that you have the funds to negotiate a lump sum payment.
Even if you have the money, you can expect lenders and collection agencies to fight back. As negotiations continue, that's more time that your loan is in delinquency and subject to penalties.
If you can't reach an agreement with the payday loan company, there are a few other solutions you can try:
|Loan Consolidation||This is the best solution for borrowers that have multiple unpaid payday loans. You can either get a debt consolidation loan or work through a payday loan consolidation program.
A debt settlement loan compiles all of your debts into one manageable payment, often with a lower interest rate. With a payday loan consolidation program, a third party will repay the debt and charge you a new payment. However, both of these solutions will still require you to eventually pay back the full payday loan amount.
|Extended Payment Plans||Asking for extended payment plans allows you to repay the payday loan on your own terms. However, not all payday loan companies will agree to this. Some loan companies might offer extended payment plans while charging higher interest rates, so you need to read the fine print!|
You can still have difficulty getting a debt consolidation loan with poor credit. If you 'd rather avoid loan rejections and negotiations altogether, get out of a payday loan with DoNotPay.
Start the Payday Loan Settlement Process in Seconds With DoNotPay
Trying to settle a payday loan by yourself is incredibly frustrating and time- consuming. Some people can't even bring themselves to begin the process at all, overwhelmed by scare tactics from collection agencies.
If you want to lower your payday loan but don't know where to start, DoNotPay has you covered. Lower your payday loan in 5 easy steps:
- Search "Negotiate Payday Loans" on DoNotPay.
- Enter the state you took out the payday loan in.
- Tell us the amount you borrowed, the date you took out the loan, and when the payment is due.
- DoNotPay will automatically calculate the APR on your behalf, and determine the best way to negotiate your case based on the amount.
- You're all set! You can generate your personal negotiation letter with one click, and use it to contact your lender to get better terms for your loan.
Why DoNotPay is the Ultimate Solution for Payday Loan Settlement
- With just one click, you've got an effective debt settlement letter.
- No more hours researching debt consolidation programs or dealing with hostile lenders. DoNotPay always makes the best case for you, often on the first try.
DoNotPay is Your One-Stop-Shop for Financial Relief
DoNotPay isn't just a payday loan settlement service. It also provides assistance with:
- Generating financial aid appeal letters
- Writing insurance claim letters
- Lowering your bills
- And more
What Else Does DoNotPay Do?
DoNotPay also provides simple solutions for a variety of other problems. Ever wondered about how to apply for scholarships, file HR complaints, or get rid of email spam successfully? Next time you 're in a jam, let DoNotPay fix it.