5 Benefits Of Working With A Payday Loan Relief Company
Payday Loan relief
Are you feeling trapped and overwhelmed by numerous payday loans?
Do you, despite doing your best, still feel you cannot clear off your debts as fast as you’d wish to?
Well, payday loans are debt traps that are easy to get into and difficult to escape.
If you are in such financial distress, you can seek debt relief.
With a loan relief program, you can consolidate all your payday loans into a single monthly payment at a reduced interest rate and flexible payment plan monthly payment
So, instead of the many monthly payments to different lenders, you’ll pay off all these loans and focus on one monthly payout and lender.
Why is it easy to fall into a payday loan trap?
Payday loans are accessible to anyone as long as you have some income and an active checking account.
All you need to do is fill out the loan application form on the lender’s website, and after approval which is almost instant. The funds will be credited to your account.
The process is pretty straightforward, but the repayment schedule is not as smooth as many payday borrowers would imagine it to be.
The high-interest rates and horrible repayment structure make these loans so expensive and difficult to repay.
Most payday lenders don’t accept a partial payment, and if you are not able to make the full amount, they’ll charge renewal fees and rollover your loan.
This then becomes a never-ending cycle that accrues more interest and fees. In no time, you’d have accumulated more debt than you intended to borrow.
Since many payday consumers are low-income earners, paying off these debts then becomes a challenge that makes them vulnerable and threatens their finances.
How can one escape the payday loan debt trap?
While it may look like a daunting task, taking the conscious effort to pay off these debts and be debt free is worth the sacrifice and hard work.
Below are some strategies that’ll help you clear off your debts.
- Add all your debts and pay those with the highest interest rates first
Make a list of all the loans you owe plus their interest rates.
Prioritize them, and start by paying the most expensive to the cheapest.
By paying off loans with the highest interest rates, you will save money that you can channel towards clearing other loans.
- Make a budget and change your spending habits
A budget will help you track your income vs. expenditure.
Know how much you bring home, make a list of all your expenses, and make an effort of not spending more than you earn.
Avoid impulse buying, and spend only on necessities. This will free up some money towards your debt obligations.
It also helps to keep off expensive purchases until your paycheck arrives instead of borrowing.
- Resist the temptation of rolling over your loan
No matter how cash-strapped you are, don’t roll over your payday loan.
If you roll over your first loan, the probability that you’ll roll over the second one is 100%.
This will then become a vicious cycle that’ll cause you to lose more money in renewal fees and accruing interest.
You could borrow from friends or family or take an advance at work, but don’t take out another payday loan.
- Save some cash for rainy days
Avoid over-reliance on payday loans by having some money set aside to use during emergencies.
Make an effort to save even $10 every month. You can ask the bank to debit it from your paycheck to your savings account directly.
You can increase this amount by sticking to the budget and making sacrifices to spend on only essential things.
- Ask for payday loan relief
If you are doing your best to escape the debt trap without much progress, it’s okay to ask for help.
You can approach a debt consolidation company, and have them negotiate with your creditors on your behalf.
The debt relief will talk your creditors into wavering off the fees and accrued interests on your loan. They’ll also come up with a flexible and affordable payment plan that will not negatively impact your credit scores.
You can either choose debt settlement or payday loan debt consolidation. A credit counselor will give you valuable advice and help you decide on what suits you most.
Debt settlement involves withholding payments to creditors and setting some funds on an escrow account with the debt relief company.
The company will then make a single payment that had been previously agreed upon to your lender. This amount will substantially reduce your debt, and the more consistent you are, the faster you’ll get out of debt.
Payday loan debt consolidation, on the other hand, involves consolidating your payday loans, credit card debts, and cash advances into a single one-time payment that you’ll make to your creditors.
You’ll then focus on repaying one loan at flexible repayment terms and affordable interest rates.
Benefits of payday loan relief
By consolidating your loans, you’ll:
- Save money
Different lenders charge varying interest rates.
Having many payday loans means you’ll be losing a lot of money on high interest and charges.
By consolidating your payday loan, you’ll get an affordable loan option at reduced interest rates that’ll help you save money.
- Help keep collection calls off your back
There’s nothing as nagging and irritating like the numerous phone calls from collection agencies.
The loan relief company will negotiate with your creditors to come up with a payday loan settlement plan that works best for you.
In a bid to regulate the payday loan industry, the state has put laws to protect the consumer.
It’s against the federal laws for collection agencies to hound you with calls or contact your family or employer regarding your loan.
When you are in the debt relief program, the loan relief company will save you from such calls.
- Shield your bank account from predatory payday lenders
If you authorize direct debits from your bank account, it’s time to revoke that authorization.
The loan relief company will stop hungry creditors from accessing your money.
This gives you control of your finances and credit.
- Get credit advice
The company offers free financial advice to its clients on how to manage their finances, make a budget and help them get back to the right financial path.
Apart from helping you be debt-free quickly, you’ll also get valuable insight into how to build a stable financial future.
- Be stress-free
To avoid the hassle of making several monthly payments to different lenders, you’ll consolidate all your debts into a single payment that’s both affordable and flexible.
You’ll get the option to choose a payment plan you are most comfortable with and lets you have some cash for your daily expenses.
If you are feeling overwhelmed by payday loans, don’t suffer in silence. Contact a loan relief company and let them help you escape the debt trap you got yourself into. Once you pay off all your debts, make an effort never to look back with the above tips.