Need to stop payday loan automatic withdrawals but can’t close your bank account? You are certainly not alone. Many cash advance borrowers find themselves in the same predicament. In need of quick cash for some emergency situation, taking out a payday loan seems to be the easy answer. Cash for a few documents and a post-dated check, then out the door. But due dates come far too soon and without sufficient cash on-hand or in the bank, they’ll be returned check fees from the bank and the lender, not to mention late repayment fees and more fees.
The Payday Loan Automatic Withdrawals Scenario
You need cash and straight away. Payday isn’t for several days and you simply can’t wait. So, you take out a $400 payday loan. But after fees, you leave the lender with $380 in cash. After you take care of that emergency expense, there’s practically nothing left until payday. But come payday, you’ll not only have to pay for living expenses, but repay your loan. What to do? Eat and pay your utilities and/or rent or repay your cash advance?
You’d like to choose eat, utilities/rent. But if you ignore the loan, it will still come straight out of your bank account. Now, you’ll not only have a negative balance from the bank’s returned check charge, you also will still owe the principal, interest and fees to cover the bounced check. Then it strikes you, close your account. But that’s how you get paid, direct deposit. Or, you have checks out to pay bills that haven’t yet cleared. Perhaps you have a negative balance.
How to Stop Payday Loan Automatic Withdrawals
Go to your bank. Request a to put a “freeze” on your account. This will stop ALL debits from occurring and the lender can’t debit your account. A freeze DOES NOT stop deposits from being made, whether check or cash deposits.
Keep in mind, this is only a temporary solution. If you really want to get out of debt and not worry about payday loan automatic withdrawals, you can get onto a payday consolidation loan plan. This will stop automatic withdrawals and allow you to payoff your loans in small monthly payments.