Any suggestions on what to do now regarding my soon-to-be-defaulted payday loans?

Question

I began getting payday loans in April of '07. I was just an inexperienced young adult trying to keep my car and my rent paid for me and my disabled mother. I quickly got trapped into a vicious cycle of debt. I rolled over numerous loans until I ended up with 9 storefront loans!! It finally became too much for me to handle. I've even already used extended payment plans with all the companies who would allow, but I ended up going back to reloan to carry over the burden of the remaining loans and my escalating bills. 8 of my loans will soon be in default. I did stop payments on the checks and closed my account and opened a new account. I placed my closed account on credit only status; the bank will now call for authorization for any debits. I just missed my due date for all the loans and haven't contacted most of the lenders yet. One called me at work and immediately became rude and threatening when I told her I couldn't pay the total amount or the interest to roll over. She threatened a lawsuit and wage garnishment. I know this is possible, but there is no way I can afford a wage garnishment from 8 separate lenders. I am so nervous about contacting the remaining companies because I know that these places just want their money and do not want to work with you. I am going to draft a letter revoking wage assignment rights and access to my bank account as well as a directive to not call me at work. However I fear that this will not stop these companies from harassing me at work. I know I've made a huge mistake and I want to pay but I just can't pay all at once. The one lady I talked to already denied my request for a payment arrangement. Are there anymore suggestions as to what else I should do?? I don't want to just sit around and wait for court, and I fear some of these companies will reject any payments I may make. Please help me! I am overwhelmed! I have sincerely learned my lesson. If I pay $50 a month to each lender I can have them paid within about 10-12 months. That's all I can afford, almost more. Any suggestions or support or advise would be greatly appreciated. Thanks!

Answer 1

ASAP!!!!!!!!!!!!!!

To find a legitimate Credit Counselor, contact the National Foundation for Credit Counseling, at www.nfcc.org or call 1-800-388-2227

Answer 2

1.  You can tell them not to call you, but that doesn't stop them from proceeding.

2.  You cannot stop a wage garnishment b/c you don't have that authority, if they go to court, win a lawsuit, and a judge grants it, your company WILL garnish your wages per the court order.

3.  They are not obligated to work with you...you over-extended yourself and agreed to the terms when  you took out the money...they should have to lose money b/c you can't pay it back.

4.  I would suggest calling a not-for-profit credit counseling service...they can work with these people on your behalf.  If they ask for money up front, they are NOT not-for-profit.