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How can I get out from under payday loans? I am in way over my head with payday loans(5 I am embarrassed to say.) I have one coming due at the end of this month for over 1300 and there is no way to pay it. I feel like I am in a desperate situation and I need some very quick advice about what I should do now. I am not sure where I went wrong along the way and I will never take out a payday loan again.
What state do you live in? Are your lenders licensed in your state? If yes, then you are liable to pay both the principal and interest. In this case you may try to negotiate with your licensed lenders and set up a payment arrangement with them. But if they are not licensed, then you owe them only the principal balance, nothing more than that. In this case it would be better for you to close down your old bank account and open a new one to stop debiting money from your account.
Could you tell us the name of the state? We could offer you better advice. Don't take any step to repay your debts unless you know the legality of your payday loans.