NoPaydayDebt

There is no doubt that a lot of people are afraid of payday loan companies, and what they can do. And guess what? They like it that way.

One of the greatest weapons in the Payday Loan Company’s arsenal is fear. If they can intimidate you and make you afraid of them, then you’re more likely to try that much harder to pay them back.

Some of them will say just about anything to make you afraid. Some even threaten to send the sheriff to put you in jail! Others start calling your work to put you in fear of losing your job. They’ll call your friends and family to embarrass you. Still others will threaten to attach your wages.

So what exactly is the truth? What can Payday Loan companies really do?

Here’s the good news: Their power is really pretty limited in what they can do, and a lot of what they do they can only do with permission.

First things first: you won’t go to jail. If a payday loan company ever threatens you with the police, laugh in their face. No sheriff is going to come to your door to collect a couple of hundred bucks, even if they cared about collecting debts. This is important: this is NOT a bad check that you wrote, it’s a loan, and is not covered under the laws about writing bad checks.

More good news: did you know you can revoke their right to call you? It’s true. If you have my book, just send the prewritten letter. Otherwise, just write them and revoke their calling rights.

What about dinging your credit? The truth is that most payday loan companies don’t bother to report you to the Big Three credit agencies, Equifax, Experian and TransUnion. The reason is that it’s rather pricey to report debts and keep them updated. This is not a hard-and-fast rule, however. Some might do it.

They will definitely report you to TeleTrack and CL Verify, the payday loan reporting agencies. This mostly affects your ability to take out more payday loans, and won’t typically affect your overall credit score.

By the way, if you haven’t seen my special free report, The Five Secret Words of Stopping Harrassment, you definitely want to check it out. You can get it emailed to you by entering your email address in the form on the home page of NoPaydayDebt (see the link below).

To Your Debt Free Life,

Greg

Negotiating with a payday loan company can be a scary experience. You know you owe them a bunch of money, and it seems every time you hear from them (either via a phone call or an email), they are tacking on new fees. They’re growing higher and higher, and sometimes they grow more than the original loan!

It’s not surprising that many people go into “avoidance mode”, not wanting to talk to them, or even think about their problem. Believe me, I understand that frame of mind!

Most people want to somehow solve their payday loan problems, but they’re intimidated to talk to them and try to work things out.

And frankly, you should be intimidated. Payday loan companies are experts at making you feel afraid. They’ll tell you anything if they think it’ll make you cough up some money to them.

There’s a big mistake that nearly everyone makes with Payday Loan companies. And it’s such a simple thing to solve. And it’s this:

Never Ever talk to payday loan companies on the phone. NEVER!

You just will never win that game. That’s the job they do everyday — talking to people on the phone, trying to squeeze money out of them either by sweet-talking, or by brute intimidation. Trust me, they are experts at it.

So what should you do instead?

Write them a letter, telling them that ALL negotiation must be done in writing. My book has pre-written letters to help you with this, but essentially you revoke their right to call you at home or at work. This has many advantages:

1) No more phone calls and intimidation tactics. The advantage of this is obvious.

2) Your negotiations are in writing, so they can’t go back on their deal later. On the phone, they’ll say anything to get you to agree to something, and then change their story later.

3) It slows things down, giving you time to think about their offer, and what your counter-offer will be. It also gives you a chance to catch your breath. Decisions made in haste are nearly always bad decisions.

So if there’s one piece of advice you take away from my various postings, this one is probably the most important. Tell them to put everything in writing, and that will put you ahead of 99% of everyone who negotiates their payday loan debt.

Next Time: How Payday Loan Companies can Hurt You — and How They Can’t.

Take care.

Greg Anderson

Have you applied for Payday Loans, but are consistently turned down? Many people find it frustrating when they have a short need for a payday loan, even just a very small amount, but they are turned down cold. Aren’t payday loans supposed to be easy to get?

Normally, they are — that’s true. If you’re being turned down for payday loans, then chances are you have a bad payment record with a couple of tracking companies that service the payday loan industry. The two primary companies are TeleTrack and CL Verify.

Now, many people ask me how Payday Loan companies can claim that they “don’t do credit checks” when they actually do run checks with these other companies. When a payday loan company says they don’t do credit checks, what they mean is that they don’t run checks at one of the “big three” credit reporting agencies, namely Experian, Equifax and TransUnion.

But if you check the small print in the contract, it will most likely say they use “verification” companies. These companies check to see if you have a good track record of paying back payday loans, and also do a few other services, such as making sure your social security number matches your name.

If you’re being turned down for payday loans and you have never defaulted on one before, then you should contact the payday loan company to see what verification service they used. It may be that someone has taken out loans using your social security number, and you need to clean up that fraudulent record.

That’s probably pretty rare, though. Most people who are turned down know why they were turned down… they have an outstanding payday loan, and probably more than one!

So how can you requalify for payday loans? I’m afraid there is no mystery to this. You have to settle your debt.

I can almost hear the moan of despair from a lot of you out there! But don’t despair. The biggest secret in the payday loan industry is that you rarely have to pay back as much as they *say* you have to pay back. If you’re smart and knowledgeable about how the industry works, you can negotiate your balance far, far lower than you think. And sometimes you can even force the payday loan companies to zero them out. People don’t believe me when I say that, but trust me. There are things the payday loan companies don’t want you to know.

Next Time I’ll Talk about: The Worst Mistake You Can Make When Negotiating With a Payday Loan Company.

Until then, take care.