Payday Loan Consolidation
Payday loan, also referred to as a ‘cash advance’, is a good option for those with small and unexpected expenses. A payday loan offers borrowers fast cash without any credit check, making it easy to qualify and acquire. This may be a good way to overcome a little financial trouble but it can become a big problem, sooner than you think.
With payday loans, it is quite easy to wind up with layers of loans on top of old bills, credit card debts and other obligations. The idea of quick cash is alluring but once you take out a payday loan, then the vicious cycle begins. It soon turns into a mess, making you feel like there is practically no way out.
Luckily, there is a way out! If you are plagued with increasing payday loan debt, tired of those never-ending irritating collection calls and ridiculously high monthly payments; then consider payday loan consolidation.
Payday Loan Consolidation Program – What is it?
Payday Loan Consolidation is a type of debt relief program that is designed to help people struggling to pay off high interest payday loans. In other words, it helps borrowers pay off cash advances and regain control over their finances again.
You should consider payday loan consolidation when you want to:
- Get out of the never-ending payday loan cycle
- Get Rid of High APRs
- Save your monthly paychecks from payday loan lenders
How Does It Work?
Payday loan consolidation plan is similar to debt consolidation. It is offered by payday loan consolidation companies with a payment plan you can afford. The consolidator basically works closely with your lender to waive off additional fees, extra charges and possibly bring down interest rates. Pretty much like a regular consolidation program, the consolidator negotiates with the lending company to consolidate your payday loans into a single loan fee at a low interest rate with small monthly repayments.
Most companies that provide payday loan consolidation services offer free counseling too, where the borrowers current financial standing is evaluated first, to help the borrower get an affordable payment plan.
Benefits of Payday Loan Consolidation
This consolidation program can benefit people struggling with payday loan debt in many ways. Benefits include:
1. Help Get Rid of the Payday Loan Trap
Payday loan consolidation programs helps borrowers get out of the debt trap. Quick access to cash that payday loans offer, makes it an attractive option and easy to fall into the debt trap. However, by getting your loan consolidated, you can swiftly get yourself out of this problem, and cope and enjoy financial independence like you did before you started taking out payday loans.
2. Pay Off Debt at Low Interest Rate
Another benefit of consolidating your payday loans is that the consolidator negotiates on your behalf with the lender to lower your interest rate. What makes loan payments extremely difficult for borrowers are high interest rates, and by lowering interest rate on your payments, imagine how easy it will become for you to pay off your debts.
3. Usually Over Limit Charges and Late Fees Are Waived Off
Another advantage of this payment program is that a payday loan consolidation company negotiates with and convinces the lender to waive off over limit charges and late fees. The elimination of these additional charges reduces your payment burden significantly.
4. Single Monthly Payment
Since debt is consolidated under the payday loan consolidation program, you only have to make a single monthly payment, sparing you from different amounts of payments to several lenders each month, overriding your budget.
5. It Becomes Easy To Budget and Manage Finances
By consolidating several payments into one, it becomes much easier for debtors to manage their finances and plan their budget.
6. Don’t Have To Manage Several Lenders Individually
When all payday loan debts are combined into one loan, the borrower no longer has to manage and deal with several lenders individually. This helps the borrower enjoy peace of mind, become stress free and focus on paying consolidated loans on time without having to talk to different lenders and becoming overwhelmed.
7. It Is Much Easier To Track Your Payments
Keeping track of 7 to 8 debt payments a month can be stressful. This is what a payday loan consolidation program can help you with. When all payments are consolidated into one, it becomes simple for you to pay off and track your dues.
8. Don’t Have To Pay High Interest Rates, Thereby Saving You Hundreds of Dollars
As we discussed earlier, the high interest rate has a balloon effect on your debt payment. It blows your payments out of proportion, which makes it extremely difficult for borrowers, already struggling with finances, to pay them off. However, consolidated payments have low interest rates, so you can enjoy huge savings which otherwise, you would have to give away in the form of interest.
9. Less Collection Calls and Reduced Chances of Getting Sued
No debtor likes threatening collection calls at ungodly hours. Payday debt consolidation helps you get rid of these unwanted calls and enjoy your good night’s sleep without any stress or worry.
How Does It Affect Your Credit Score/Rating?
Payday loan consolidation makes a positive impact on your credit. Wondering how? Let us explain: Through this method of repayment, you are paying off your debts, which make a good impact on your credit reports. Also, when you pay off all your dues and make all your consolidated payments timely, ‘Paid in full’ status is shown and updated in your reports – this affects your report and score positively.
For More Information on Payday Loan Consolidation or Assistance, Get in Touch With our Debt Consultant Today!