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.
What is payday loan consolidation?
Payday loan consolidation is a way to manage your multiple payday loans and repay them with just a single payment every month.
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
can save you
Three steps to get payday loan debt help
1 Get Free counseling:
Call 800-DEBT-913 and get FREE advice on how and why to consolidate payday loan debt. Explain how much you owe on your payday loans and the interest rates lenders are charging.
2 Ask questions:
Shoot questions regarding payday loan consolidation services to the financial counselor. Ask how much you have to pay for the fees and when you can expect to get out of this debt problem.
3 Consolidate payday loans:
Once you get the answers to your questions, start arranging funds to consolidate payday loans fast. Make monthly payments and follow the payday loan consolidation plan properly.
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 a 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 amount of collection fees 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 about any problem
Can you repay pdls with other loans or credit cards?
Yes, you can take out a personal loan with a relatively low-interest rate to repay your existing pdls and other unsecured debts.
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 payday loan debt consolidation methods help you pay 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.
Don’t panic if you have bad credit. Actually, when you default on your payments, be it a credit card or payday loans, your credit score may drop. Payday loan consolidation companies know this fact very well and provide extra help to borrowers to get out of this mess.
Is payday loan consolidation safe?
Payday loan consolidation is safe if you take help of a reliable consolidation company.
Is it better than payday loan debt settlement?
If you can repay the outstanding balance in full, then it is better to opt for payday loan consolidation since it can help you increase your score. Whereas, your credit score may drop a bit if you opt for payday loan settlement since you’re not paying off your debts in full.
How many ways can you consolidate payday loans?
Payday loan consolidation program:
This program rescues you from the vicious cycle of payday loan debt. It offers you payday loan debt solution in a short span of time with lower interest rates and monthly payments.
Tip: It would be best to go for a payday loan debt consolidation program with no upfront fees since this is against the law.Know more…
Payday loan consolidation loans:
These are low-interest loans that help you pay off multiple high-interest payday loans and rest in peace. You need to make only one payment every month to pay off these loans gradually.
Tip: It is best to check out the interest rates and repayment terms on these loans so that you don't end up paying more.
Debt management plan
This option gives you relief by reducing the interest rates on your payday loans.Know more...
Debt settlement program
This option gives you payday loan relief by paying less than the outstanding amount.Know more...
Here, the court offers payday loan help by liquidating assets.
CFPB trying to bring new rules to save borrowers
In March 2015, Consumer Financial Protection Bureau (CFPB) declared that it would like to implement new rules to save borrowers from the abusive tactics of the predatory lenders. The proposed rules would make it necessary for the payday loan lenders to determine if a potential borrower can pay off the loan in future - including principal amount, fees, interests, etc. The lenders have to check borrower’s income, borrowing history and financial liabilities before offering a loan. The rules would also impose a 60-day cooling off period between loans. Read more - CFPB Considers Proposal to End Payday Debt Traps
CFPB has not yet been successful in implementing these rules amidst oppositions from certain sections of the political parties. Richard Cordray, the head of the agency commented,
These common-sense protections are aimed at ensuring that consumers have access to credit that helps, not harms them.
So why are some political leaders are not backing these new rules? Well, Sean Barlett (the spokesman of Wasserman Schultz) replied,
The legislation is about preserving the shared goal of implementing strong consumer protections while also preserving access to affordable lending for low-income communities.