The First Step to Getting Out of Payday Loan Debt

Are you stuck in a never ending cycle of payday loan debt? Is your hard-earned paycheck or benefits check eaten away each pay period with debits from one or more payday lenders? I've been there. I know how frustrating it is to see multiple withdrawals each pay period from payday lenders. One month, I remember having five debits from five different lenders (who didn't even sound familiar to me!) chipping away at what I owed on five different loans. When your paycheck isn't that large in the first place, it can shrink down to nothing pretty quickly with a lots of $60 - $150 debits from lenders. I decided to break the cycle and get out of payday loan debt. You can too. You can't imagine how much of a relief it is to have your full paycheck back each paycycle! (Plus, I don't have to dodge phone calls from angry collection agents any more).

The first step to get out of payday loan debt is to get organized and get a clear understanding of how bad the situation is. Although this isn't exactly pleasant, you need to do it. Collect all of the loan agreements you've signed (even the electronic ones that Internet payday lenders make you "sign" electronically). Print them out and put them in order. Make sure you have one for each of your current loans. If you don't have all of the agreements, call the lenders. If a lender automatically debits their fees from your bank account, you should be able to find your lender's phone number on your statement (it'll be listed next to the debit amount and date, and will say something like "CSH Amer 866-xxx-xxxx"). Call the 800 number (or whatever phone number is shown), tell them you are a customer, and ask them to email, fax or mail a copy of your loan agreement to you. While you have them on the phone, also ask them to tell you the total balance you owe and your next due date. Have them break the total balance due into the "fee" amount and the "principal" amount. The "fee" amount is the amount they are charging you for the loan. The "principal" amount is the balance remaining on the loan they gave you.

Now, create a list of everything you owe to payday lenders. I do it on a piece of paper and draw a little table. Write down: the lender's name, a phone number, the date you originally borrowed from them, the amount you originally borrowed, and the fees on your original loan. Next, write down the total amount currently owed to that lender, and the next due date. If you have more than one loan outstanding, this helps you get a clear picture of where you stand. It will also help you come up with a plan of action to clear up the loans and get out of payday loan debt. It's a simple but important first step.

Get more details on how to get out of payday loan debt, including helpful tips and worksheets. You can also read more about getting out of payday loan debt. Just remember, when you finally get out of payday loan debt, it will be like a huge weight has been lifted. Get your paycheck back! You earned it.