Negotiating payday loans down is harder than talking to normal loans, or credit card debt service. You will need to find out if your loan is legal in your state first. Search your local state laws about payday loans. So the second step for you to pay off payday loans is to call up whoever has your loan.

Armed with the truth about payday loans in your state you will have the upper hand in dealing with the company. If the loans are illegal in your state then you are only required to pay back the amount you have borrowed. You will need to talk to the loan company in a non-threatening manner. If they feel threatened they will be less likely to talk about a deal. Make it seem like you just found out it was illegal, and you’re afraid of being arrested but want to handle your debt. Before you do this you will need to talk to your bank and get them to stop all payments from the company, saying it is an unauthorized debit and illegal.

If you live in a state where loans are legal, but have the interest rate regulated then it is your job to negotiate the interest rate down. Talk to someone about how the state law says that they are breaking the law by charging you high interest. Offer to make enough payments of what you can afford with the interest rate set by state law, in order to pay off your loan. Remember, you will still need to handle your bank account before doing this.

If you have failed to make payments on your loan then your loan may be in collections. Phone calls can be made to find out who has your payday loan, and if it is still collecting interest. However, if it still is within the payday loan company things become complicated. Negotiating payday loans down when they are in collections can be very hard.