When you have a financial emergency or when you are falling behind on paying your bills, payday loans do seem like a very simple, practical and easy option. Payday loans are very short-term( 1 – 2 week), very high interest rate (upto 3000% annual APR) loans for fulfilling immediate needs.

Almost anyone who can furnish some kind of ID is eligible to apply for a payday loan. Hardly anyone is refused a loan.

The downside is however the Fat fees and interest rate. Also it is very easy to miss a payment. I personally know many people who ended up paying $2000 – $3000 on a $500 loan they took for emergency.

Myth is that Payday loan debt collectors are not easy to deal with. They act like mafia and often use threats to life and property to get every last penny out of you.

We think that if you keep following tips in mind, you will be able to deal with payday loan debt collectors like a breeze.

Never Close Lines of  Communications

Closing lines of communication, ignoring collection calls, not paying on time. all these are signs that you are trying to avoid paying back your loan. If you do that, your loan will be handed over to debt collection agency as soon as possible.

Workout  an Alternative Payment Plan with Lender

Most lenders are willing to workout an alternative payment plan with you. It is cheaper for them to re-schedule your loan.

Show to the Lender that you are trying to pay

If you keep your end of bargain, lender will stop harassing you and start to workout ways to help you pay your loan. If they see that you are trying to make payments on time. at least making partial payments, they will stop putting pressure on you and try to work it out with you on your terms.

Find a Debt Consolidation Company

If you have more than one payday loan, debt consolidation might be a very reasonable option. If you find a good debt consolidation company, they will stop all collection calls and make payments to all payday loan lenders. They will also negotiate to waive off some of those excessive fees.

Know Your rights and Stand up to protect them.

Every state has different laws that protect its consumers from harassments of  debt collectors. In most states debt collectors are not allowed to threaten you with an intention to sue you. Take your time to learn about your state usury laws.

I hope that after being armed with these tips, you will be more confident, when you will talk to a payday loan debt collector, next time.

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