Out of the 12 million U.S. residents that take out a payday each year, only 15% of people are able to repay the debt on time and in full, leaving 24% of users having to refinance the debt or set up an EPP, among other practices.
If you are one of those Americans who don’t know how to pay their payday loans, remember that it is never a good idea to try to hide or ignore your debts completely. You used them to achieve your goal to cover your unexpected expenses. And now, it is time to repay the bill.
Like any other source of financing, the government has a vested interest in making sure you repay your payday loans. As such, they provide several programs to help recent borrowers come to terms with their repayment. Let’s take a closer look at what you can expect from the authority in terms of your payday repayment.
Will The Authority Help Me Pay Off My Debts?
The short answer is no. In fact, the authority has recently released some updates on repaying student debts due to the recession, but payday sources Filld.loan were not included. Put another way, the federal authority can’t provide you with a grant or other financial assistance to cover your payday debt.
Nevertheless, the authority is constantly searching for ways to control payday lending providers to end the vicious debt cycle by controlling loan terms and protecting customers from tribal lending operations. Below, you will find out how much the authority can assist you if you need money desperately.
How Can I Expect the Authority to Assist?
Even though the U.S. authority doesn’t pay off your payday loan debt, some local authorities may reduce the damage from payday lending in several following ways.
State Restrictions
Some states have already taken steps to control loan amounts, interest rates, the number of payday allowances, or the number of pay cycles. Other states have banned payday lending.
Therefore, it is important to be aware of your state laws before taking out any type of loan. Keep in mind that you also should operate only with government-backed payday lenders to expect any help from official authorities.
Tribal Lending Practices
The U.S. authority may help protect you from tribal lending under the CFPB and FDCPA. One way to avoid any fraudulent activity is to inform collectors that you know your rights under this act. So, any abusive, deceptive, or unfair practices should be sent to the FTC, the CFPB, and the attorney’s office in your city.
Government Programs
The federal authority also offers many borrower-friendly programs that have relatively low-interest rates and easy access to quality. In many cases, the authority doesn’t lend money directly, but it guarantees the loan to your lending provider. To put it differently, the authority will repay your provider if you, the borrower, fail to do so.
There are several types of loans and programs available at the time of writing this article. The most common sources of government help are the following:
Education loans (under the Direct Loan program): Stafford loans and PLUS loans.
Housing loans: First-time homebuyer, FHA loans, VA loans (for service members and veterans), and USDA loans.
Business loans: SBA loans (for small businesses and nonprofits) and STTR programs.
Green projects: PACE programs (for solar installations, sustainable landscaping, and energy-efficiency upgrades).
Other Options to Get Payday Loan Help
If your payday loan comes due, but you don’t have money to repay and can’t qualify for the government programs mentioned above, here are some other options to pay attention to.
Refinancing. This can help you organize and manage multiple payments by switching your several existing debts into one. There are several ways to refinance payday debts, and refinancing can be combined with other services.
Debt settlement. This involves negotiating with your creditors to forgive a certain amount of your current principal. You may combine settlement with refinancing to switch multiple debts into one payment.
Credit counseling. This option can help you in several ways, including organizing your finances, creating debt management plans, and negotiating with creditors. Most legitimate services typically offer a consultation for free.
