Payday loan crisis

[meljessie]

I am in the state of Virginia. Over the last year, for reasons that just happened, I found myself in the payday loan cycle. I got one, and when it came to pay the loan back, I found out I could refinance and just pay the fees, which I did. Paying these fees then cut me short on something else so I got another one, and so on and so on.....I now find myself broke every month just paying these stupid fees. I want to just stop renewing them, and work on paying them off, but am afraid of the ramifications. What can happen if you don't pay in full and offer to pay in installments? What prosecution can you face if you go beyond their supposed time limit? Someone please help me, as I am at my wits end......

 

[Debt Guy]

If you default, the creditor has the right to sue you and to obtain a judgment. Following the judgment, they can garnish your wages and any bank account that you have.

You will not be arrested. This is a purely civil matter.

I suggest that you try to find a local community based credit counseling service. Call the local united way office and ask if they have a member agency that does credit counseling or if they can recommend someone. Stay off the internet when looking for a credit counseling service.

Good luck to you.