Payday loan place is about to send my account to letigations is there anything that can be done to avoid....?

Question

To avoid paying moeny I know I owe? This loan was taken out in October of 2006 . The priciple balance was $1000.00. I was making timely payments up until 4 or 5 months into the loan. I had a baby the 1st week of September. I found a job the second week of October. I took out the loan the 2nd week of October. I lost the job in January. The child had separation anxiety and would cry for hours even though she stayed with mother that we lived with while I worked. So I decided to stay home with her besides the fact that I had no choice. I was fired from the job. I stayed home until April. I found a new job and began working on paying the loan off. I stopped making payments b/c I was moving on my own. In October of 2007 the sent the account to collections and by January of 2008 they put the account on my credit as a chargeoff. I haven't heard from them since January. Now they want the princple paid by Aug. 1 or I'll be sued. I thought it stopped @ the chargeoff. What should I do?

Answer 1

Pay them.

You borrowed the money.

You agreed to pay it back.

Honor your obligation.

Answer 2

No girl it doesn't stop at charge off, but they usually sell it to a collection agent and then thats when the calls will come every day. I going though the same thing with credit cards.

Answer 3

payday lenders are pond scum ,and that is a slur on the pond scum. how much have you paid them,how much is owed ? they charge ridiculous and outrageous interest rates ,if you have paid most of what you have borrowed (the orginal  $1000  ) don't worry over it ,they won't sue .it's a bluff to get you paying again. pay off the principal if you can and forget the interest,i would bet most loans from payday lenders made in excess of  $1000 are in default , if they get the principle back and a few more payments they have still made money,plus the tax break for the charge off............tom