How to Settle a Payday Loan

How to Settle a Payday LoanIf you’ve gotten to the point where you haven’t paid off your loan in quite some time, you might be wondering how to settle a payday loan.

Lenders will typically want you to pay your loan off in full, and won’t resort to selling your debt to a debt collector, because they would rather keep you in their records in hopes of getting the full amount. You typically only run into the ability to settle a debt when your original lender sells off your debt for pennies on the dollar and writes you off as a bad investment.

The moment that happens you’re no longer their concern, and you won’t be able to pay off your loan through them any longer, because they’ve washed their hands of the matter. But in most cases, they won’t do this, as it doesn’t make a lot of sense to, and most lenders are not so large that they can just write you off as if you’re never ever going to pay.

How to Settle a Payday Loan in Many Cases

So your next option is to work with your payday lender to see what they’ll accept. While none of them will offer any sort of official payment plan, money is money and it’s not as if they’re going to refuse it. So rather than go rounds with them on the phone or in person, just bring in whatever money you have and put it down as a payment. You can do this as often as you’d like. You’ll never run into a time when they say no, sorry, we can’t accept that money from you.

These companies are in it for the long haul, and while they would prefer it if you paid off your loan in full and took out another one, they’re also not in the business of turning away payments when they arrive. You might think that you have burned your bridge with them by failing to pay off your loan on time. But this is not the case in many instances. They already have you in the system. They know that you’re good for the money, and that you’re a good enough person to care about repaying your loan, even if it’s not on time. For them, they’d rather have you as a repeat customer, rather than take their chances with someone new to replace you with, who could turn out to be a total deadbeat and make off with their cash.

So rather than think that it’s you versus them, consider them as one of your last remaining creditors that doesn’t really care too much about your inability to repay on time. They know you probably have a lot of trouble paying things off and paying loans back. They knew this before they signed on with you so you don’t need to think they’re like lenders you’ve used in the past. They typically don’t take the same sort of collection actions as things like student loans or car loans.

It just makes business sense for them to treat you right. They’ll be firm, but at the end of the day they just want their money back, and they want you to take the money out again. That’s where they make their money, by you taking it out again and again. The only reason they get upset by a slow payment is because it throws a kink in their plan of getting multiple re-loans out of you. You’re slowing down the flow, and that’s what bums them out the most.

So create your own settlement plan, but don’t think for a moment that they’ll accept a lower amount than what you agreed to. If you only want to pay half your loan back, you can do so, and it will probably prevent them from taking legal action or bothering so much with hunting you down for the rest, but it’s highly unlikely that they’ll agree to take you off the books for a smaller percentage of what you owe.

Disclaimer: The advice given here is for informational purposes only and is not a strategy for refusing to pay your loan. You should check with your local state laws on what is possible in your area, and use this as a guide for further research and due diligence.

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