The Worst Mistake You Can Make When Negotiating With a Payday Loan Company
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