I'm in Payday Loan Hell with the rest of you...need help.
I recently fell into the spiral of payday loans, as well. It started with one to help me with moving expenses. And then another, and another..to the point that I have 5 now. I never intended it to get that far but when I was really broke and had nothing to my name and no one to borrow money from, that was the only option.
But now, between the five companies, they are deducting $910 per month and NONE of it is going to the principle on the loans. I make about $1000 per paycheck, and they are taking half of each paycheck.
If I don't do something, I'm not going to be able to pay my car payment, insurance, and rent--the three critical items.
I thought about closing my checking account and then sending them letters, stating that I will pay them off via money order by mail. I DO want to pay the loans but for example, last month, not only did I pay $910 in worthless interest, but about $150 in NSF fees resulting in them taking the money the day before scheduled because my payday fell on a Saturday and they took their money on the Friday before hand.
If I close my checking account, with no more money being drawn, out of each paycheck, I can pay ONE loan off at a time, thus in 5 pay periods, have EACH loan completely paid for.
I'm scared of the repercussions of closing my checking account, though. I'm afraid that (A) I'll never be able to get a checking account again, (B) in the time lapse of the 5 pay periods, or about 8 weeks, they will have sued me by then, or (C) will have gotten me in trouble at work. I work for an airline. They all have the main switchboard number and calls of such nature are NOT welcomed at my job.
In 5 pay periods, I can have all the loans paid off. I am just soooo scared of what will happen to me if I just go with it and close my checking account.
Any advice would be greatly appreciated.
Email address removed as per forum rules - Mike