How to Get Out of the Payday Loop?
March 21, 2019
One click and you have €1000 on your account for free. It’s easy to take out a loan. Another month comes and you take your time again – because it’s fast and convenient. Rich and what! However, at some point you are not able to pay off many payday loans on time? Like thousands of borrowers every year – you fall into the noon loop. What’s more, many people do not use the offers of reliable loan companies and pack up in horrendously expensive payday, without even reading the contract.
The fact is that you fell into a spiral of debt. And now it may seem unreal to you, but you can wake up with the proverbial “hand in a potty” – with debt reaching a minimum of a dozen or so thousand, forfeiture of property, damaged health and even ending up in prison.
How to get out of the payday loop in the easiest way?
It all depends on how bad your financial situation is. Familiarize yourself with 4 cases.
- You have no chance of a loan in the bank due to lack of creditworthiness. If your liabilities chwilówek not exceed 20 000 think about non-bank loan for a longer period, eg. 2-4 years. The loan will certainly not be free, but it is easier to pay monthly, for example, € 400, than € 5,000 once. On my blog you will find the cheapest on-line loans with installments of up to 48 months.
- If your debt in momentary companies does not exceed € 3000, take another free time to pay the previous one. Thanks to this you will gain some time. You pay back the old one, or the one you will have to pay off soon. You will avoid big costs due to this. The first minute is often free if you repay it on time, if not you pay as normal + costs of renewing or refinancing the loan. You must remember about this. If this solution seems to be good for you, see a list of free quick loans provided via the Internet by reliable companies operating in accordance with the anti-usury law.
- You have creditworthiness. If your credit obligations exceed € 20,000 , but all debts were settled on time and you do not have any arrears then take a consolidation loan at the bank. Thanks to this you will avoid high costs for unpaid check-ins. You will escape before the tightening loop of payday loans. You will convert many loans into one cheap installment. Such a loan is only available to people with a fixed documented income above € 1,900 net monthly and a good credit history. I do not conceal that banks are very reluctant to consolidate payday loans and it is very difficult to get such a loan. Every day I help to get such a loan for readers.
- Do you default on payday payouts over 30 days? The costs start to grow exponentially. Are the phones from debt collection endless? Do you receive a termination of the loan agreement? and maybe court orders of payment? After about 7-12 months from an unpaid payment, expect the bailiff to knock on your door. Then you will find yourself in a situation of nervous breakdown, and suicidal thoughts will become everyday life. In such a situation, it is necessary to take “debt relief” actions as soon as possible. Debt relief is legal and is carried out by law and debt law offices. For readers of the blog along with my lawyer, we launched a free debt service and full financial and legal assistance. We run such cases in court and out of court. So far, in 81% of cases, we have won cases where the debtor had to pay only a small part of his obligations, in a few cases the entire debt was canceled. The struggle for debt usually takes about 2 years, but there is no better way to protect against debt collection.
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How to get out of the debt loop by yourself?
If, however, you have already fallen into debts, you are not in a lost position. You have several options that you can take yourself without any thorough legal and financial knowledge. The most important thing is not to sit with your arms folded.
- Negotiate debt repayment. The company in which you are in debt does not want to incur additional costs of debt collection. Changing the repayment terms is a much better solution.
- Do not finance repayment with another loan for a while! If you already take a loan for a longer period. It will be less of a burden. If you take a few minutes, you may not be able to repay some liabilities at once.
- Consolidate your debts. It is easier to pay one installment than 5. If the amount of your debt is significant, it is worth changing a few payday loans per loan. In the case of installment loans, the repayment period is longer and will allow you to match installments to your earnings. Thanks to this you will not burden your wallet and it will be easier to get out straight.
- Repay as much as you can by ticking in the title of the transfer that you repay the loan principal. It is important that the transfer title specifies that you repay the capital. Thanks to this, in the event of a case in court, you will know that you did not renew / refinance the loan, but repaid it. It will be easier for you to negotiate the distribution of the rest of the debt and it will systematically decrease. You will not have to pay € 3,000 for only € 2,800, for example.
- Do not “roll” loans. The regulations limited this practice, but loan companies propose refinancing a loan in a new related company bypassing the law. Check if it pays off for you. The costs of “extension / refinancing” are very large. Perhaps interest for non-repayment in time will turn out to be lower – it is worth reading the contract. Of course, I do not advise you not to make a loan, but it is important to know how much it will cost you.
- And maybe the most stupid advice for you, but it’s not without reason. Make sure you pay your installments without taking new payday loans. Thanks to this, you will sleep peacefully and in a few months you will not have any debts. Take a deep breath and think about finding an extra job for a few months. There is plenty of work today, all you need to do is not be afraid to work 12-14 hours a day. And yes, I know you think it’s the dumbest advice you’ve ever heard. The pride will spread to you that thanks to your persistence and hard work you have broken the loop of payday loans.
Are you getting calls from a debt collector or bailiff?
I have already written about it extensively in the article “how to get out of debt” , but I repeat: there is always a way out, the most important is to start looking for it.
- Negotiate with the debt collector. He cares about the easiest way to recover money without resorting to bailiff or court proceedings.
- Make an out-of-court settlement. An out-of-court settlement can be made both before the case is referred to court proceedings and during the trial. If you are considering a settlement, please consult my lawyer.
- You still have a court settlement. It is concluded before the court ruling in the case. Here I also recommend you to use my lawyer.
If you are already in danger of being executed by a bailiff, remember this is not the end of the world.
- Try to get along with the creditor about the voluntary repayment of the debt. The creditor can suspend enforcement proceedings as well as cancel them. Most creditors agree only to the suspension of proceedings. In such a situation, the bailiff does not perform further activities or calculate the enforcement costs due to these activities.
- Defend against debt collection. It is necessary to read the documents carefully and if you think you can not do it yourself, get help from my lawyer.
- In some situations, you can declare a consumer bankruptcy. Consumer bankruptcy does not mean, however, that you do not have to pay your debts at all. If you do not have another solution, then consumer bankruptcy is a new start in life after a few years of payday payments. This year, the number of applications for the declaration of consumer bankruptcy doubled, so as you can see, more and more people take advantage of this opportunity.
Remember, long is not the end of the world. You have rolled your leg and this is a lesson for the future. Maybe you are ashamed… do not take it to yourself – after all you did not make the mistake and fell into a spiral of payday loans. Your error is a warning to others. Reflux dependence is not something isolated. You’ll be out of trouble. Take advantage of my advice. At the beginning, everything will look difficult, but once you are free of debt, the stone will fall from your heart. What will not kill you can only strengthen you.