Payday loan consolidation - Way out of payday hell !!

[Discussion]

If you're stuck in payday loan debt and are looking for a way out of the problem, you may consider payday loan consolidation. This is where you negotiate for lower rates on your debt and consolidate multiple bills into a single monthly payment. Consolidation helps you out of payday loan trap so that you can have better control of your money.

What are the types of payday loan consolidation?

There are 2 types of payday loan consolidation. Here's a brief idea on each type.

Payday loan consolidation program: This is similar to a debt consolidation program. Here, payday loan consolidation companies work with your lenders in order to reduce interest rates on your payday loans thereby making your payments affordable. If you have missed payments, the dues are either reduced or eliminated in order to minimize your monthly payments.

The consolidation program is such that payday loan consolidation companies accept a single monthly payment from you and disburses the funds to your payday lenders. This is how you consolidate payday loans and replace multiple bills with one monthly payment.

Consolidation loan: It works like a debt consolidation loan with which you can pay off multiple payday loans. After you do so, you need to pay off the consolidation loan in monthly installments. But the loan term being longer, the total interest payable over the term adds up to quite a big amount.

Since you're paying much more in total interest and the term is quite long, a payday loan consolidation program is a much better option compared to taking out payday loan consolidation loans.

What are the advantages of payday loan consolidation?

When you go for payday loan debt consolidation assistance, you get the following benefits.

Reduced rates on your payday loans.
Your monthly payments are affordable.
You make a single payment each month.
Late fees and over limit charges are reduced or waived off.
You can avoid creditor or collection calls.
Paid off accounts have a positive impact on your credit.
Don't have to manage individual creditors and different payments.
Budgeting becomes simpler as there is one fixed monthly payment.

Payday loan consolidation offers a manageable way out of your payday loan debt problems. It relieves stress and gives you peace of mind when everything seems helpless.

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Posted: Sat Feb 03, 2007 6:48 pm Post subject: Payday loan consolidation - Way out of payday hell !!

People going through payday loan problems can consider Payday Loan Consolidation as a possible solution. Take the following steps. You should be able to buy some time while you are learning about your rights and stand strong against the lenders. Stop all the direct deposits with your employer. Close the bank accounts after verifying the laws in your state. Get your paycheck, go to a check cashing place, cash it and buy money orders. Pay your other important bills. This will help you in getting some control over your money. Donâ€™t let it eaten up by the loan sharks. Once you have done this, the lenders will start sending emails knowing the fact that your account is already closed. You can imagine them losing control and nothing can be done now to harm you. Now, you can make them deal on your terms. Put your point that your account was closed by the bank and you want to work out payment arrangements with them. Ask for the quickcollect info or the address where you will send the payments. Use the same strategy for all the pdl companies you owe money to. There is a law that if you pay less than the promised amount, your account will be put into default, and they are not legally allowed to charge any interests on the account. Verify this law with your state first. Keep sending payments until you pay off the principal amount only, no interests. Your defense to be used here is that the original loan agreement was based on your payday bank direct deposit. Once the bank account is closed, the loan agreement got terminated. Now all you have to pay is the principal amount. Don't be tensed of the pdl collectors. They will only intimidate you on the phone. It will take them very long to get a garnishment against you because you have followed the contract by paying the principal amount. Most IPDL are not licensed in the borrowerâ€™s state, so they wonâ€™t take the matter to the court. If they do, question them about their license and turn the judge's attention towards them. Time the situation very nicely and with determination and strong will. And you can do this when you are putting something on the loan principal or have already paid it. If you are finding hard paying on your own, find some company doing payday loan consolidation.

Howard

Howard

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Posted: Sat Feb 03, 2007 7:06 pm Post subject: payday loan consolidation - brilliant suggestion

Brilliant!! Howard payday loan consolidation is a wonderful advice - it gives breathing and thinking room so that priorities can be set. Great work! _________________ Four things in life that you should never lose-1. Hope; 2. Peace; 3. Honesty; 4. Friends.

irish51cc
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Posted: Sat Feb 03, 2007 7:56 pm Post subject: Excellent advice payday loan consolidation

Excellent advice, Howard. Payday loan consolidation can definitely help. The only thing I would do differently is not do quickcollect, since that is very costly, but would stand fast and send payments through the mail.

kscornell
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Posted: Sun Feb 04, 2007 6:14 am Post subject: payday loan consolidation additional suggestion

Very good advice Howard! I would definitely second your advice, kscornell - always send payment through the mail, never by quickcollect or moneygram. Then only you can be successful in Payday Loan Consolidation. _________________ A journey of a thousand miles begins with a single step...and becoming debt free is a journey!

SUEBEEHONEY70
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Posted: Fri May 11, 2007 8:05 pm Post subject: close the current bank account & payday loan consolidati

Hi Howard, I think that the first most important thing that you can do is close the current bank account that you gave the pdl companies access to and open up a new account at a different bank. These places won't stop taking out money just because they are asked to. There have been stories of people opening up new accounts at the same bank and the pdl companies getting access to them and debiting the account. I think that this is an excellent thread and perhaps should be made into a sticky for payday loan consolidation. You have given some great advice. I do agree with suebee and kscornell-I refuse to pay money doing Western Union or Quick Collect/Moneygram because these places don't want to give out their addresses. If they want my money, they will take a money order!!!

Sassnlucy
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Posted: Sat May 12, 2007 2:09 pm Post subject: Consolidation of payday loan - Cashier's check will be the b

I would never send payment thru Western Union for the simple fact it is almost untraceable from your end.You have no proof they got it. Cashier's check or money order would be best in my opinion while doing consolidation of payday loan. _________________ Cajunbulldog Keeping an eye out for consumers. http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm#809 http://www.ftc.gov/os/statutes/fcrajump.shtm http://www.debtconsolidationcare.com/forums/about216.html Use this letter to protect your rights under the FDCPA myfairdebt.com & myfaircredit.com-Good source of case law in forums.

cajunbulldog
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Posted: Sat May 12, 2007 3:00 pm Post subject: Payday loan consolidation suggestion - giving info of checki

Giving these companies access to checking account is not safe. Cajun puts a good point about Western Union are untraceable. I have a question in my mind. Do you think every company has a receiver code and they will accept money orders? Is there any kind of rule on this part? If we are sure about this, we will not feel lost if we are forcing the pdl company to accept money order. What do you say?

Howard

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Posted: Sat May 12, 2007 3:04 pm Post subject: One of the steps in payday loan consolidation

Actually somewhere buried in either the truth in lending or electronic transfer act is a statement that a borrower cannot be forced to just do ach,they must have options if ach is not possible.I do agree with you about not letting these sharks near a bank account. _________________ Cajunbulldog Keeping an eye out for consumers. http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm#809 http://www.ftc.gov/os/statutes/fcrajump.shtm http://www.debtconsolidationcare.com/forums/about216.html Use this letter to protect your rights under the FDCPA myfairdebt.com & myfaircredit.com-Good source of case law in forums.

cajunbulldog
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Posted: Sat May 12, 2007 3:07 pm Post subject: payday loan consolidation and TILA act

Thanks Cajun, I will do some research on TILA Act. I got a direction. If you find something, please post it here. It will help a lot.

Howard

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Posted: Sat May 12, 2007 7:33 pm Post subject: Electronic Transfer Act, you must know payday loan consolida

I believe it is part of the Electronic Transfer Act. Goudah just posted it in a thread the other day.

Sassnlucy
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Posted: Wed Oct 24, 2007 8:11 pm Post subject: closing bank account during payday loan consolidation

please check into your state laws regarding closing account that a payday loan is written on. some states, like missouri, have it written that it is considered a criminal offense to close the account it was written on, as well as putting a stop payment order on it. and if you do this, you can be put up on criminal charges for intentionally misleading a creditor to evade making payment. (something like that). anyways. just some additional info to check into.

gues
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Posted: Thu Oct 09, 2008 4:04 pm Post subject: voluntary wage garnishment & payday loan consolidation

I appreciate your advice and help - but what can you do if you have signed a voluntary wage garnishment - can they enforce this or can you stop this process when you negotiate payments with them

gale
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Posted: Thu Oct 09, 2008 4:16 pm Post subject: payday loan consolidation discussion

Western Union Quick Collects are extremely traceable and trackable since they go directly to the CA. You don't have to panic while payday loan consolidation.

SOAPLADY
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Posted: Mon Jan 12, 2009 12:48 pm Post subject: Payday loans online - can Payday Loan Consolidation help?

I have got numerous loans online and too what I have found out is they are all the same. I have tried to make arrangements with them so it won't hit my account I has one when it was time for their fees they would do it in 3 separate debits which always caused my account to be overdrawn and cause me several hundred dollars in fees. I need some really good advice how to pay just principal on these loans and get rid of them they have my account in such a mess I have got my reserve at my bank maxed out also to pay fees if someone knows something other than closing out my account because I can't right now due to owing the reserve now please let me know I'm in the process of losing alot because of these and at time it was easy and fast and now a nightmare from ****. I need some advice and fast. Can payday loan debt consolidation help?

kmparsons
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Posted: Wed Feb 11, 2009 10:10 am Post subject:

what can you do when the bank closed the account the payday loans were written on and now they have sent it to the prosecuting attorney. I live in Missouri and it is a criminal offense up to 7 year and 7000 fine. I need help quick. I'm suppose to get this taken care of by 2/27. I don't have $555.