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If you're stuck in payday loan debt and are looking for a way out of the problem, you may consider payday loan debt 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. If you want to know what payday loan consolidation is all about, glance through the topics given below:
What are the types of payday loan debt consolidation?
There are 2 types of payday loan debt 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 debt 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.
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. Dont 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 borrowers state, so they wont 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.
By signing up for counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the pay off amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.