Payday Loan debt can be quite a challenge so getting rid of it as quickly as possible is usually the best way to go.
If you have come into some money, you may be able to settle your payday loan debt for a fraction of what you actually owe. The lender gets some of their money back and you can move on.
Whilst you may find your offer rejected, it is at least worth asking for a settlement. You have nothing to loose and if the lender does accept, you could save some money.
Making an offer to settle your payday loan debt
Depending on where your debt is at, you should write to either the original lender or the debt collection agency collecting your account. There is a template debt settlement letter on this blog, and you can use that to make your Full and Final Settlement Offer.
Start off with an offer lower than you are willing to pay, that way you have a little leverage. The lender could well accept your offer or may come back to you with a counter offer. Eventually you will both either agree a settlement or you may find the lender is not interested. However if you don’t ask you don’t get.
I recently did this with my Uncle Buck payday Loan and managed to settle it for half of what was owed. This saved me a lot of money and it was also one less debt for me to deal with.
What if you settlement offer isn’t accepted?
If your offer is not accepted and you are both worlds apart on a settlement figure then all you can do is to continue paying. If you don’t have a repayment plan for your payday loan in place, now might be the time to get one set up. Visit my post on setting up a payday loan repayment plan to find out more and what’s involved in setting up a repayment plan.
Maybe when you have paid a bit of the balance back you could try again to offer a settlement. It’s always worth trying to save a few pounds in any case so you should at least give it a go.
Raising money to settle Payday Loan Debt
If you are looking to get some extra cash to settle your payday loan debt then you could consider selling some stuff on eBay, assuming you have stuff that’s worth anything. If you can get any overtime at work, that could also help you. Saving money on your existing monthly expenses could also work if you can save enough. Look at your money and see if there is anything you can do to increase what you have.
Getting Help with Payday Loans
If you are looking for help with your Payday Loan Debt, please see this post which looks at Payday Loan Help and lists a number of posts with further information. You can also head on over to the Debt Help page to see a list of organisations who can help you. Good luck with your Payday Loan Debt!