How do I handle a payday loan store and STOP paying the interest fees? ?

Question

Any advice for how to stop paying the huge interest fees on and just pay the principal loan amount? They are legal in my state, but I've got to pay my essential bills now and I feel so caught.

Answer 1

I'm sorry to say it but your only real option is to defer the bills. Pay the payday loan service off, and never go back again.

Annualized interest on this things are basically illegal, they simply just have a "cheque cashing fee" loophole.

You'd be better off borrowing from a mobster.

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Answer 2

That's the benefit of the payday loan...payday loans should be for "short term" and used on an emergency basis. The interest fees are high per state laws, we can charge in my state of MS up to 18% of what you borrow. The only way for you to get out from under it, is to pay it off. You pay the fee as like any other interest fee on a loan. It is done by the law and it is your responsibility to pay it. When you went into the payday loan store and borrowed the money, because your credit isn't good, this is why the fees come into play. Whenever doing a loan like this...read the contract presented to you, it's in black and white and tells you exactly what type of loan you are getting, and what the consequences are if you should default on the loan. Pay it off and get out from under it if you can't pay your regular bills. Good Luck!  

Answer 3

you are caught. Why cheat the company out of profits?looks like bad planning.

Answer 4

GOODDAY TO YOU ALL!!!!!!

  

       I am Willson Roland by name, i live in U.K. just a few month ago i

was in search for a loan of € 70,000 as my family was running out of money for feeding and my education. i was scammed about € 430  and i decided not to involve my self in such business, finally colleague of my introduced me to a loan firm due to my appearance and doings. I made a trial and i am most grateful am i today, i was given a loan amount of € 45,000  by this great firm Harvey's Loan Inc. managed by Mr,Patrick Harvey.  

     If you are in need of a ganuine or legit loan or financial assistance

and you can be reliable and trusted of capable of paying back at the due time of the funds i will advice you to, contact him vai email [e-mail] and free from scams in the net.

Answer 5

Every lender applies payments to interest first, then principal.  You can't turn this around.  (Even if you could, you'd just be paying interest on the interest, it wouldn't lower the amount you owe or the speed at which it keeps growing.)

Your only solutions are:

1)  Increase your income by taking a second job.

2)  Borrow money from someone else (even from a 401K or cashing out an IRA).

3)  Stop paying any other bill until the payday loan is paid (the payday loan is such that it will probably be cheaper to try and recover from a slow-pay on something else).

4)  Squeeze more money from your budget.

Your situtation is exactly why so many states have tried to ban these loans.