Too Many Payday Loans?
Are you spending most of your wages paying high interest and fees to your payday loan lenders? Every week do they seem to increase more and more? This is the revolving payday loans cycles of debt.
Financial freedom may seem to be the ultimate goal for every consumer, but this can only be achieved if you pay all your outstanding debts on time. For the average consumer, paying bills on time can be challenging considering that you also have other expenses to meet. This is where loan consolidation comes in.
We know better than anyone that the frustrating debt cycle doesn’t seem to end. We help clients like you every day, and we will assist you to escape from your financial lending nightmare.
What is payday loan consolidation?
Payday Loan consolidation is when you combine several high-interest short term loans into one monthly payment. The interest rate falls from around 600% down to a manageable amount. Examples of these types of loans are personal installment loans and cash advance loans.
The main advantage is that you will have less interest which results in a planned attack of repayment. In simple terms, loan consolidation means that you;
Merge all your payday loans into one payment
This strategy helps consumers combine all their payday loans and credit card debts into a one monthly repayment plan. You only need to open a separate account used exclusively for the debt help program.
How do I consolidate my payday loans?
You consolidate payday loans with monthly payments and debt management. Debt consolidation companies can help you process the required monthly repayments depending on your income.
How do I get in touch with a consolidation company?
When you look for a loan consolidation company on the internet, read their terms and conditions. If it all seems fine, then apply on their form like ours above. Soon after you will be contacted by a debt counselor, who will immediately get to work on your case.
They will contact the lending companies and negotiate your outstanding debts. This is the starting point of your debt plan to get rid of multiple payday loans
Should I start Payday Loan Consolidation Now?
Remember, payday loan debts are available only for a limited time while you can solve the situation. If you are reading this, your situation is probably salvageable.
Don’t delay a minute. Payday interest accumulates at an alarming rate. The consultation is FREE, so apply today, for your own sake.
Can you go to jail for not paying off payday loans?
No, you cannot go directly to jail. But there are always consequences when you borrow and do not repay. The lenders can take you to court and they can get a judgment against you. By just avoiding the debt problem, it will not go away.
- Be familiar with the terms of the loaner
How does payday loan consolidation work?
A payday loan consolidation company provides an offer to the consumer concerning the payment plan that they can afford. The company works closely with all the lenders to reduce the interest charges and, if possible, waive off all the extra charges and additional fees.
A majority of the payday loan consolidation companies also provide free canceling after properly evaluating your financial situation. They will also help you get out of debt by providing a manageable repayment plan.
The debt relief option may be provided to consumers who are struggling to pay off their payday loans even after making their best efforts. With a loan consolidation program, you can easily pay off your outstanding debts and get your finances on track again.
What are the benefits of payday loan consolidation?
The main benefit of payday loan consolidation is the ability to clear all your debts at a manageable pace. It will also reduce the amount that you spend on loan repayments every month. But since you will be paying a lesser amount per month, it may take a longer time to pay off the outstanding debts. Payday loan consolidation is also a good deal for the lenders.
Since this is an informal agreement, lenders may be willing to accept any of the terms offered. But if they agree on these terms, they are also confident that the borrower is doing whatever they cay can to ensure that the unsecured debts are paid off. (Even if this means taking a longer time) Some of the main benefits of loan consolidation include;
What happens after I start the payday loan consolidation program?
After starting the debt management plan, you will be able to know;
- The amount that you will be paying every month
- How this amount is split among the lenders
- Which lenders have frozen the interest rate and additional charges?
- How much debt is remaining?
Are there any drawbacks of payday loan consolidation?
Payday loan consolidation only works when you make your payments on time. This can be easily achieved if you set aside funds for emergencies and make additional payments if possible. You might have to cut down your monthly expenses, especially on things that you don’t really need.
You also should ensure that you save as much when you are in a position to do so. If you do not make payments on time, not much progress will be made. You will still owe your payday lenders the principal loan amount, additional interest rates, fee charges and fines. You should, therefore, avoid as much as possible not to default on the new repayment term.
Can I continue using my credit cards?
During debt consolidation, you may be required to close all your credit card accounts. Some loan consolidation companies allow their clients to retain one credit card to use for emergencies, business, or travel. But once you complete the program, credit card companies will also be willing to start a new relationship with you.
Can I enroll online?
Yes, it is easy to enroll in a debt consolidation program online. After enrolling, you will get a phone interview which may take up to 60 minutes depending on the company you choose.
When should I not consider a debt management program?
You may need the help of a payday loan consolidation company if your loan is small enough for you to pay through proper budgeting. You should equally avoid the program when the debt is so large that you do not have enough income to cater for your monthly needs. However, everyone’s situation is different and the only way to know whether the program will work for you or not is by talking to a financial counselor.
Will my information be confidential when I enroll?
You only have one manageable payment per month
It is always stressful to pay off a multitude of debts every month. This is even worse when you have to cut down your monthly expenses to pay those debts. With debt management, all the loan payments will be combined into a single manageable monthly payment. This makes it much easier and convenient to pay off the debts.
Interest and charges could be frozen
During the negotiation process, the debt management company may also ask your payday loan lenders to freeze the interest and other additional fee charges on the debt. The lenders may agree or disagree with this request. If they happen to agree, you will only to pay the outstanding loan and worry less about the growing interest.
Contact with lenders is left to the consolidation company
It is always overwhelming to get several calls from debt collectors asking for loan repayments. But once you contact a loan consolidation company, all the contacts will be handled by the company.
They will always keep in touch with lenders to ensure that you make all your payments on time and take care of (any) emerging issues. Remember that lenders will still have the legal right to contact you. But if you happen to get calls from them, you can always refer them to the debt management officials.
Is payday loan consolidation better than payday loan settlement?
If you can repay the outstanding debts in full, the best option is to go for consolidation which will also help improve your credit score. If you go for a payday loan settlement, your credit score will be affected since you will not pay off the outstanding debts in full.
Is payday loan consolidation legal?
Yes. But it is also important to ensure that you work with a reputable and reliable payday loan consolidation company.
What is the best debt consolidation company to use?
One of the essential things to look for in a payday loan consolidation company is the type of debt relief they offer. Other important considerations include;
- The kind of debt that the agency works with
- Their fees and requirement
- Customer reviews
- What is the minimum of the maximum amount of debt required?
- Whether you have to sign an agreement
- How long the company has been in business
- How long it will take to be debt free
A debt consolidation agreement isn’t legally binding. If for instance, you receive a pay cut or any emergency expenses, it is possible to have your debt management payment reduced. This will still make it possible for you to afford the loan repayments.
If on the other hand, you happen to receive a pay rise or other additional incomes, you can ask the company to increase your debt management payments. This will make it easier to clear the debts fast.
During the debt management plan, a financial professional will always be there to advise you accordingly. You are free to ask any questions. A financial professional will also contact you if you happen to struggle with the payment plan and do anything possible to ensure that you get the right help.
Consolidate your payday loans and prevent additional fees
Wasteful fees and mounting interest from payday loans unsecured debt are a thing of the past with this service program. The consolidated payday loans can make this happen.
How much do you have to pay every month?
It depends on your outstanding loans, how much they are, and how many lenders are involved. It is also dependent on your income and what you think you can afford. Remember that the longer you avoid paying, the more the interest will be.
Consolidation program or consolidation loan?
If you take a consolidation loan, the lender will almost certainly want to secure the loan on an asset of yours. If you think you can handle it, then a loan is for you.
We would recommend payday loan relief as a proffered option as the counselor will tailor-make a loan for your financial circumstances. You also will not have to deal with the lenders and collection agencies on your own.
- Financial Problems Related to Loan Repayment
How can I use payday loan consolidation to pay debt fast?
Get your credit report
The first step to getting out of debt is through is to get your credit report. Knowing what is in your credit report is always important. If your credit score is above 660, you may qualify for a consolidation loan with lower rates.
The information in your credit report also determined whether or not you are a trusted borrower. In other words, are you able to pay the debt on time?
Compute your debts
Secondly, you need to compute the total amount owned in payday loans. If the total amount is below $3000 and you have good credit scores, it will be easier to get enrolled to the program.
Contact a debt consolidation company
Online payday loan consolidation companies are always willing to help consolidate your payday loans. The best company should also offer free debt counseling sessions where you can directly talk to a debt counselor concerning your financial position. The counselor analyzes this information and advice on whether you should go for a debt settlement or debt consolidation program.
Comparing your options
Several banks and credit card firms may agree to advance you a consolidation loan. Compare their terms, rates, fees and so on. The idea is to save as much money as you can.
- Impact on your credit score after consolidating payday loans
Will payday loan consolidation hurt my credit?
Once you apply for a payday loan debt consolidation program, the chances are that your credit score will improve. Payday loan consolidation helps you pay your debts on time and in full. Such payments are usually updated on your credit report, which will, in turn, have a positive impact on your scores. If you have bad credit, do not despair.
Defaulting on loan payments will obviously hurt your score. But payday loan consolidation companies are aware of this fact and they are always ready to provide extra help which will help you get out of the mess.
Do payday loan consolidation companies work for free?
Online payday loan consolidation companies charge a fee for the services they offer. The fee charged may vary from one company to another. It is therefore important to compare rates from different companies before you enroll in the program.
Avoid companies that ask for upfront fees since this is against the law. If you are concerned about the fees, a nonprofit debt consolidation company can be a perfect alternative. These companies only charge a small fee for converting your loan repayment into a flexible repayment plan.
What if the lenders refuse to cooperate?
There are other ways you can use to get help if the lenders are not willing to cooperate;
- Get advice from a credit counseling agency
- Ask the bank to ACH authorization. This means that lenders will not be able to debit money directly from your account.
- Apply for community assistance plans for help with house rent, utilities and food
What are other payday loan relief programs?
Payday loan debt settlement is also a choice that you can consider. With this option, you can use a lump sum amount to pay all your high-interest loans and save money.
The settlement company negotiates with your lenders after conducting a thorough evaluation of the state laws. They help to scrap down a large amount of debt by using their smart negotiation skills.
You can also apply for bankruptcy. This can actually help with your payday loans, but it also has certain rules that you need to follow. Breaking a single rule can lead to dismissal or your case. If for instance, you apply and get approved for cash advance two months before filing for bankruptcy, it will be presumed fraudulent.
Other ways to get out of payday loan debt
- Tally up all your loans on paper and accept the problem
- Pay down high-interest loans first
- Contact lenders and ask for reduced interest or a better payment plan
- Get a personal loan with low interest to pay off high interest
- Get cash from a credit union
- Borrow from friends and family
- Ask your boss for help at work
What steps are involved in payday loan consolidation?
Generally, payday loan relief goes through 3 main steps;
Give your debt details
Online payday loan consolidation companies have a sign-up form available on their website where you can give your details. Some of the information that you need to provide includes your name, email address, phone number, type of debt, name of the state, the total debt amount, among others.
Get a free consultation
Once the information is reviewed, you will get feedback within 24 hours. A profession will contact you for discussions regarding the debts. They will also check the state laws, evaluate your monthly income and calculate your interest. They will then provide you with convenient payday loan assistance.
Consolidate your debts
After getting an evaluation of your financial situation, the debt consolidation company will suggest ways to discontinue automatic debits from your bank account and negotiate with your lenders for a flexible repayment plan. They will assist you to consolidate your loans into one affordable monthly payment.