Comments on: Payback Time for Payday Loans – Share Your Story and win $50 http://moneysmartlife.com/payback-time-for-payday-loans-%e2%80%93-share-your-story-and-win-50/ Money Tips for a Better Life Thu, 18 Mar 2010 18:56:26 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: Cheryl http://moneysmartlife.com/payback-time-for-payday-loans-%e2%80%93-share-your-story-and-win-50/comment-page-1/#comment-156802 Cheryl Thu, 30 Jul 2009 20:46:08 +0000 http://www.moneysmartlife.com/2007/02/23/payback-time-for-payday-loans-%e2%80%93-share-your-story-and-win-50/#comment-156802 We started out with Payday Loans when we hit financial bottom when I lost my job. We had just moved with a larger mortgage, plus have 2 kids at home to feed. We now have 6 Payday Loans that are killing us. I'm laying awake at night worrying. We pay one off and it seems something else comes up. Id go without food and eat cereal to pay them off, but I have 2 teenage boys who eat all the time and I even bulk cook and freeze things for them. No junk food, pop etc. I home cook meals every night. It is such a hole to get in, and so frustrating when you cant get out. Our credit has hit rock bottom now. We have considered bankruptcy since some of our other bills have suffered now also. Ive heard you can file against Payday loans, but where will I get the money to file???? We started out with Payday Loans when we hit financial bottom when I lost my job. We had just moved with a larger mortgage, plus have 2 kids at home to feed. We now have 6 Payday Loans that are killing us. I’m laying awake at night worrying. We pay one off and it seems something else comes up. Id go without food and eat cereal to pay them off, but I have 2 teenage boys who eat all the time and I even bulk cook and freeze things for them. No junk food, pop etc. I home cook meals every night. It is such a hole to get in, and so frustrating when you cant get out. Our credit has hit rock bottom now. We have considered bankruptcy since some of our other bills have suffered now also. Ive heard you can file against Payday loans, but where will I get the money to file????

]]> By: Cara http://moneysmartlife.com/payback-time-for-payday-loans-%e2%80%93-share-your-story-and-win-50/comment-page-1/#comment-147982 Cara Sun, 03 May 2009 21:35:57 +0000 http://www.moneysmartlife.com/2007/02/23/payback-time-for-payday-loans-%e2%80%93-share-your-story-and-win-50/#comment-147982 Anyone who is badly in debt from a <a href="http://www.actionpaydayloans.com" rel="nofollow">Payday Loan</a> needs to contact the lender. Work out payment arrangements. There is no reason at all that you should risk your home, or the welfare of your family to simply pay back a loan of any form, payday loan or not. Talking to the lender is a huge help, and typically even if they will not work with you a lawyer helping you to arrange payment plans is much cheaper than the interest that you would otherwise end up paying. Anyone who is badly in debt from a Payday Loan needs to contact the lender. Work out payment arrangements. There is no reason at all that you should risk your home, or the welfare of your family to simply pay back a loan of any form, payday loan or not. Talking to the lender is a huge help, and typically even if they will not work with you a lawyer helping you to arrange payment plans is much cheaper than the interest that you would otherwise end up paying.

]]> By: paul http://moneysmartlife.com/payback-time-for-payday-loans-%e2%80%93-share-your-story-and-win-50/comment-page-1/#comment-137179 paul Sun, 22 Feb 2009 02:06:30 +0000 http://www.moneysmartlife.com/2007/02/23/payback-time-for-payday-loans-%e2%80%93-share-your-story-and-win-50/#comment-137179 My wife and I have always used payday loans when we needed to get out of a bind. But about 18 months ago, we bought our first house. Our lender new it was almost over our head and it would be rough. They hit us with additional undisclosed costs at the end of escrow and we took out a cash call loan to pay it off. 2500@99.96%. Also out lender promised us they would refi us in 3 months. 3 months came and went and no luck on the refi. By 6 months we paid off the the cash call loan but needed to start doing pay day loans to make the mortgage. It started with 2, then 4, then 6, ect... each month we would pay them back and reloan going deeper and deeper into the hole essentially paying loans with new loans. By about 9 months we had about 15 loans between the 2 of us. The fees alone, 45 bucks X 15 loans every 2 weeks, we were blowing roughly 1300 bucks a month just in fees. So in october, we skipped a mortgage payment to pay off all the loans it was roughly 4500 to pay off the 15 loans at 300 each. So we couldnt even pay them all off. So since october, we have been juggling our mortgage and 5 to 15 loans, basically skipping a mortgage payment or car payment to keep the total loans down to a mininum. It would be nice to use the loan fees as a tax deduction. We get slammed in taxes!! No kids making decent money, but struggling with a large mortgage payment. We dont want a bailout, We just want to get refinanced like the lender originally promised. My wife and I have always used payday loans when we needed to get out of a bind. But about 18 months ago, we bought our first house. Our lender new it was almost over our head and it would be rough. They hit us with additional undisclosed costs at the end of escrow and we took out a cash call loan to pay it off. 2500@99.96%. Also out lender promised us they would refi us in 3 months.

3 months came and went and no luck on the refi. By 6 months we paid off the the cash call loan but needed to start doing pay day loans to make the mortgage. It started with 2, then 4, then 6, ect… each month we would pay them back and reloan going deeper and deeper into the hole essentially paying loans with new loans. By about 9 months we had about 15 loans between the 2 of us.

The fees alone, 45 bucks X 15 loans every 2 weeks, we were blowing roughly 1300 bucks a month just in fees. So in october, we skipped a mortgage payment to pay off all the loans it was roughly 4500 to pay off the 15 loans at 300 each. So we couldnt even pay them all off. So since october, we have been juggling our mortgage and 5 to 15 loans, basically skipping a mortgage payment or car payment to keep the total loans down to a mininum.

It would be nice to use the loan fees as a tax deduction. We get slammed in taxes!! No kids making decent money, but struggling with a large mortgage payment. We dont want a bailout, We just want to get refinanced like the lender originally promised.

]]> By: britney http://moneysmartlife.com/payback-time-for-payday-loans-%e2%80%93-share-your-story-and-win-50/comment-page-1/#comment-118831 britney Fri, 07 Nov 2008 03:23:15 +0000 http://www.moneysmartlife.com/2007/02/23/payback-time-for-payday-loans-%e2%80%93-share-your-story-and-win-50/#comment-118831 My son was born and I did not have any savings I am currently owing about 2400 in loans there truly is no end to this cycle I barely start paying one off and I need a new one for something else... Although the ones on the web are much cheaper than the ones out on the street. My son was born and I did not have any savings I am currently owing about 2400 in loans there truly is no end to this cycle I barely start paying one off and I need a new one for something else… Although the ones on the web are much cheaper than the ones out on the street.

]]> By: Canadian Personal Finance Blog » Blog Archive » Carnivals and Weekly Recap http://moneysmartlife.com/payback-time-for-payday-loans-%e2%80%93-share-your-story-and-win-50/comment-page-1/#comment-89725 Canadian Personal Finance Blog » Blog Archive » Carnivals and Weekly Recap Thu, 24 Jul 2008 14:46:16 +0000 http://www.moneysmartlife.com/2007/02/23/payback-time-for-payday-loans-%e2%80%93-share-your-story-and-win-50/#comment-89725 [...] $mart Life about pay day loans, where he is looking for stories about using pay day loan companies. He is offering $50.00 for the best story, so go on over and have a [...] [...] $mart Life about pay day loans, where he is looking for stories about using pay day loan companies. He is offering $50.00 for the best story, so go on over and have a [...]

]]> By: Jessica http://moneysmartlife.com/payback-time-for-payday-loans-%e2%80%93-share-your-story-and-win-50/comment-page-1/#comment-46370 Jessica Wed, 16 Jan 2008 20:03:45 +0000 http://www.moneysmartlife.com/2007/02/23/payback-time-for-payday-loans-%e2%80%93-share-your-story-and-win-50/#comment-46370 We had to take out almost $2000 in payday loans after our youngest was ill with RSV. I had no paid leave left, so I went for almost 2 months without pay. Our credit was already poor so we couldn't get a traditional loan. And thought a payday loan would work out, b/c it was better than the bank foreclosing on our home. Well, we're still playing catch up with these loans, and it hurts watching 1/2 of our paychecks go towards paying these off. We were able to catch up on bills, except for these loans and have definitely learned never to get one again. We had to take out almost $2000 in payday loans after our youngest was ill with RSV. I had no paid leave left, so I went for almost 2 months without pay. Our credit was already poor so we couldn’t get a traditional loan. And thought a payday loan would work out, b/c it was better than the bank foreclosing on our home. Well, we’re still playing catch up with these loans, and it hurts watching 1/2 of our paychecks go towards paying these off. We were able to catch up on bills, except for these loans and have definitely learned never to get one again.

]]> By: Macinac http://moneysmartlife.com/payback-time-for-payday-loans-%e2%80%93-share-your-story-and-win-50/comment-page-1/#comment-43476 Macinac Sun, 06 Jan 2008 17:28:45 +0000 http://www.moneysmartlife.com/2007/02/23/payback-time-for-payday-loans-%e2%80%93-share-your-story-and-win-50/#comment-43476 I had an old uncle who made a lot of money on short term loans. I think his rate was 25% per week. When I was a kid he was in prison, but got out when I was around 14. He had a box of index cards of loans that were outstanding from a decade before. Proceeding to collect on these as far as possible, he was soon reestablished. He rented a house, but had all of the modern appliances of the time (1950s) and a big Buick Roadmaster with a driver and bodyguard. As a bent over old man he would sit on a bench downtown and people would still go to him to get loans and make payments. I had an old uncle who made a lot of money on short term loans. I think his rate was 25% per week. When I was a kid he was in prison, but got out when I was around 14. He had a box of index cards of loans that were outstanding from a decade before. Proceeding to collect on these as far as possible, he was soon reestablished. He rented a house, but had all of the modern appliances of the time (1950s) and a big Buick Roadmaster with a driver and bodyguard. As a bent over old man he would sit on a bench downtown and people would still go to him to get loans and make payments.

]]> By: Susan http://moneysmartlife.com/payback-time-for-payday-loans-%e2%80%93-share-your-story-and-win-50/comment-page-1/#comment-19593 Susan Thu, 20 Sep 2007 20:45:51 +0000 http://www.moneysmartlife.com/2007/02/23/payback-time-for-payday-loans-%e2%80%93-share-your-story-and-win-50/#comment-19593 I took out a $1,000 loan in 1999 from Citi Finance because my credit was not so good at the time. I only needed $500 for moving expenses but the minimum to borrow was a thousand. They issued the check at over 30% interest. The same day they gave me a check for $1,000, I wrote them a check for $500. The following month I paid off the balance. I believe this is where the term loan shark originated. I took out a $1,000 loan in 1999 from Citi Finance because my credit was not so good at the time. I only needed $500 for moving expenses but the minimum to borrow was a thousand. They issued the check at over 30% interest. The same day they gave me a check for $1,000, I wrote them a check for $500. The following month I paid off the balance. I believe this is where the term loan shark originated.

]]> By: Ben http://moneysmartlife.com/payback-time-for-payday-loans-%e2%80%93-share-your-story-and-win-50/comment-page-1/#comment-2980 Ben Mon, 09 Apr 2007 05:58:01 +0000 http://www.moneysmartlife.com/2007/02/23/payback-time-for-payday-loans-%e2%80%93-share-your-story-and-win-50/#comment-2980 Anne, I don't think the interest on a payday loan is tax deductible. If you itemize you can claim deductions for mortgage interest but I don't think interest paid on other loans or credit cards can be used as a tax deduction for your personal income tax. If I'm wrong, please someone correct me. Anne, I don’t think the interest on a payday loan is tax deductible. If you itemize you can claim deductions for mortgage interest but I don’t think interest paid on other loans or credit cards can be used as a tax deduction for your personal income tax. If I’m wrong, please someone correct me.

]]> By: Anne http://moneysmartlife.com/payback-time-for-payday-loans-%e2%80%93-share-your-story-and-win-50/comment-page-1/#comment-2950 Anne Sat, 07 Apr 2007 23:25:34 +0000 http://www.moneysmartlife.com/2007/02/23/payback-time-for-payday-loans-%e2%80%93-share-your-story-and-win-50/#comment-2950 I just did my taxes but I have a pressig question which I can't seem to find on the net. To make a long story short, I too got caught in the never-ending revolving door of money borrowing from pay day loans. I finally spoke up about this with my family and put an end to it. I want to know if all the interest I've been charged over the year can be used as an expense on my income taxes. If anyone knows, please let me know. I'd really appreciate it. I just did my taxes but I have a pressig question which I can’t seem to find on the net. To make a long story short, I too got caught in the never-ending revolving door of money borrowing from pay day loans. I finally spoke up about this with my family and put an end to it. I want to know if all the interest I’ve been charged over the year can be used as an expense on my income taxes. If anyone knows, please let me know. I’d really appreciate it.

]]>