March 30, 2010 12:04 AM UTC

"How Did I Get Myself In This Payday Loan Mess?"

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• by: TheBell

(And stop spamming us! – promoted by Colorado Pols)

The following letter came to us because we are part of a coalition that is trying to make payday lending less harmful for Coloradans. After an initial email, the writer decided to share her story in greater detail. We think it paints a revealing picture of payday lending in Colorado.

Ever since I wrote to you I have been thinking, how did I get myself in this payday loan mess?

I just got a bonus from work, of $1,500.00 I am vowing to cut myself off payday loans.

I am thinking how can I be so stupid, and borrow all this money? But I am not stupid, payday loans dangle this money in your face, they are not like my Credit Union that looks at my debt ratio, ask why I need the money, looks at my credit to see if I am in debt and in financial trouble.

Payday loans are out to make a buck. A high buck for that matter.

I am ashamed that I did this, this payday I paid, $288 To Money Tree, $198 to Speedy Cash, $575 to EzMoney, $575 to Express cash. I still owe Emergency Cash $240 which I will pay off next payday.

And National Payday Loans is taking me to court because they wouldn’t give me a payment plan and I stopped payment on there check to force them to offer me a payment plan. I felt I had paid them at least $1,000 back and I wasn’t being unreasonable in my request. I have a court date of April 14, 2010, in which I will go to court and ask for a payment plan. Except now, I don’t owe $575 I owe $1,100. My first thought when I got the summons was to get two payday loans and pay them off, because I don’t want this on my credit record. But, I have to face this as having one choice, and erase payday loan from my choices.

I don’t have any dependents, and I work and make a middle class living. I was able to crunch numbers and come up with the money to pay all these payday loans off. I left my car payment behind to do this, and now I have to work with them to allow me time to catch up. This is the real world.

But when payday loan companies make it so easy to borrow, and so hard to payback, because of the high interest they charge, people don’t realize it until it is to late. It would be so easy for me to get in my car today and go to any of these payday loans and they would give me the money for my car payment, but like a drug or alcohol addiction, I am kicking the habit.

I feel sorry for the people who have payday loan habits and don’t have the resources to do what I am doing. Money is like a drug. If you don’t have it you crave it, and if somebody makes it easy to get it, without checking if you can afford it or not, that company is  like drug dealer.

So I pray for my court date, the Attorney General’s office said they would try to help. I pray for a payment plan, and I pray that we succeed in getting payday loans out of town.

Please tell me who to write to besides you. Ez Money gave me a list of representatives, shall I send them all a email or letter, will that help?

I know we’re pressed for time. EZ Money said they will not survive if House Bill 1351  passes. She thought I was asking for a list of representatives because I was on her side. I didn’t say anything to her about this, but I have spoken up before about how unreasonable they are. Some of those employees just tell me, they just work there.

I wanted to write this email, to put my thoughts in writing while there fresh in my mind. I paid off these payday loans yesterday.

God Bless You for being a voice for the people.