1. Treat the loan as a very important thing in your life.
Paying off your payday loans is very significant, however, paying the rent or buying food for your family is even more important than the loan. So, keep in mind to always put the necessary things first. Always pay back the debt with the highest rate of interest first, such as credit cards. You can be assured that this will usually be your payday loan. Also, keep in mind to keep on paying the minimum sums that you owe on the credit card so that you do not go into default.
2. Revoke on-going payment authorities!
It is your right to cancel the authorization to the payday lender to take out money from your bank account anytime; you should do this in case you don’t have sufficient money in your bank account to pay off the payday loan.
You can cancel the authorization to withdraw money by informing the lender. So, if you decide to inform him/her directly, then you should think about traceable ways: send a certified letter, because by this you will possess correspondence evidence in case they refuse it in the future.
Furthermore, you can always request from your bank to revoke your authorization. If you think that the payday lender will not accept your request, then you should definitely do this.
3. Be careful about automatic renewals!
It is significant that you have confirmed with your lender to take the whole sum of money you owe to him/her in case you have given him/her the authorization to withdraw money from your account in electronic way. Many corporations will only take out the renewal fee, and this will at no time lessen the owing sum.
4. Do not put up with phone calls that are threatening!
A large number of the collections agencies that are employed by lenders will probably threaten you with some legal implications, such as prison time although it is illegal thing to do. So, be calm in case this happens to you. Tell to your caller that you know this is untrue and illegal if they try to persuade you otherwise. Also, try telling them that you think of reporting this to the authorities.
Furthermore, if they continue giving you these types of calls, you should begin recording them.
5. Always make sure whether the loan is legal or not!
If you owe money to an online payday lender, there is a possibility that the loan is illegal. Each and every country in the US possesses laws that are different considering payday lenders.
Some of these forbid a great number of the practices employed by those online lenders. So, if you conclude that your loan is not legal, you do not have to pay it off. Also, you can always get in touch with the Department of Financial Services in your country to establish whether online payday loan is legal or not.
You may have to close your bank account in order to prevent the lender from continuing to withdraw money.