What if I can't pay my Payday Loans back?

Avoid panic when you are faced with a situation where you cannot meet payments for a payday loan. Carefully weigh your options. If you have multiple payday lenders withdrawing money from your accounts, it is advisable to call them and discuss your situation so that you can put together a payment plan that is manageable.

Payday lenders commonly have several accounts in default and have contingency plans where a repayment scheme is offered so you can manage better. When you communicate with your lenders, they may assist you in repaying the loan and not report you to the credit bureaus, which will affect your credit score negatively. If you don't communicate with them and are unable to pay off the loan, they will report you to Teletrack.

What is Teletrack? Teletrack keeps track and aggressively pursues delinquent accounts of payday lenders by calling up your home repeatedly to 'remind' you of your financial obligations.

A payday loan delinquency is a civil offence. They file a suit against you, but you can not be arrested.

Laws regulating how payday lenders can pursue repayment of your delinquent account vary from state to state. Know how your state laws apply to you and how they restrict payday lenders in your area.

After you put together a repayment plan as a concession for being unable to pay off a loan, you must consult a financial or debt counselor. There are debt consolidation loans that can help you reduce your payments. You will also get sound financial advice on how to manage your debts better.