Payday loan debt consolidation - Way out of payday hell !!

Have you taken out payday loans and now in search of a suitable solution to get rid of them? If yes, then you can consider payday loan debt consolidation.

How payday loan consolidation can help you out

Get rid of payday loan trap
Lower interest rates on your debt
Late fees and over limit charges reduced/waived off
Single monthly payment budgeting becomes easier
Do not have to manage individual creditors
Avoid harassing creditor/collection phone calls

How payday loan debt consolidation affects credit

When you opt for payday loan debt consolidation, there is a possibility of positive impact on your credit. This is because through this method, you are paying off your debts in full, and Paid in full statuses are updated in your credit reports. These affect your credit report and credit score positively.

How to know whether or not your payday loan is legal

Payday loan laws are not universal in every state. Here are certain payday loan laws based on which you can determine whether or not your payday loan is legal.

State legal status: This determines whether or not payday loan is legal in your state
Loan specifications: There are certain laws regarding the maximum amount, loan term, etc. which need to be followed
Interest rate cap on small loans: In some states, there is a limit on the interest rate; lenders cannot charge more than that amount
Debt limits: Even if a payday loan is legal in your state, there might be limitations on the number of loans you can take out at a time
Limits on collection: You should know the collection fees amount and whether or not criminal action is prohibited
File your complaint and get information: There is some regulatory board in every state where you can contact regarding any problem

How you can tackle illegal payday loans

You can follow these steps if you are sure that your payday loans are illegal.

Close your bank account linked to your loan -
Ask your bank to close the account linked to your payday loan and open a new one. If the policy of the bank is not to close the account till a certain period, then opt for putting the account on deposit only status till the time you can close the account.
Notify lender that your payday loan is illegal -
Notify lender that your payday loan is illegal - Notify your lender that either your payday loan is illegal in your state, or it does not follow the laws properly; for example you are paying more in interest.
Pay only the principal amount -
If you have not yet paid back the principal, then inform your lender that you are willing to do so but on your terms and conditions. However, if you have paid more than the principal amount, then you can demand a refund of the overpayment. The reason being you need to pay only the principal amount if your loan is illegal.

How to consolidate legal payday loans

There are 2 ways to consolidate legal payday loans, which are given below:

Payday loan consolidation program

Payday loan consolidation program
Consolidation loan

Consolidation loan
Additional information - With the help of debt consolidation, you can consolidate your payday loans along with other debts, such as, credit card debts. You can replace your multiple bills with a single monthly payment and have better control of your finances.