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Continue Paying Your Payday
Loans:
Most people seeking Langhorne Debt Solutions'
services could tread water a while longer by making only the
minimum payments. But they also realize that any unexpected
downturn – a lost job, an unexpected car repair, a medical bill,
etc. – would put them right over the edge. Even if nothing bad
happens, it will cost a small fortune before they make a dent in
their payday loan debt.
The Community Financial Services
Association of America (CFSA) is the lender’s trade group. CFSA
is very proud of it’s “best practices” which state that members
can only roll a loan over four times (unless
limited further by applicable state law) before they must
require the borrower pay the loan down, usually in increments of
10% of principal over ten pay periods. Following this model, a
person paid biweekly that borrows $500 at “$20 on a $100” would
pay an astounding $1450 back - $950 of which is interest – by
making only the minimum payments.
But many lenders, especially those
on the internet, are based in states with weak laws, are not
members of CFSA and charge as much as $30 on $100. Horror
stories abound of people paying thousands of dollars in interest
without reducing their principal by a dollar. Accordingly,
Langhorne Debt Solutions does NOT recommend this option.
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