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I took out 4 payday loans in August 2008. The interest rate of these loans is so high that it will not be possible for me to continue with this payment. Now I have decided to stop making payment. But I don’t want to ruin my credit score. I have tried to settle with the lenders but they didn’t agree. They want the full payment. What can I do? Is there any other options which will help me to protect myself and my credit score?
Is there any other options which will help me?
You haven’t mentioned the name of your pdl companies. So it’s difficult to say whether or not they are licensed in your state. You are liable for both the principal and interest, if the lenders are licensed in your state. They can sue you because of non-payment of debt. So it’s better to pay-off their debts asap. If it seems difficult to negotiate with them on your own, then you may get professional help. As far as the illegal loans are concerned, you can get out of this trap by paying back only the principal balance. In this case you need not to pay back any interest or fees.