With the rising of cost of living in America, it’s no surprise that the average citizen is in debt with at least one lender. In fact, research shows that the regular working class is juggling at least two loans to supplement their salaries and support day-to-day expenses and monthly bills. This is the reason why short-term borrowing options, like those offered by payday loans, remain popular despite their high interest rates.
However, this balancing act can sometimes cause more trouble than ever before. When you find yourself in a situation where your multiple loans are taking a toll on your life, don’t be too quick to declare bankruptcy just yet. You’ll be happy to know that there are that can help—and they won’t have any trouble with your previous credit.
Consolidating Your Payday Loan Debts
Owing money to multiple creditors can be overwhelming and stressful, and asking for help will not be easy. Looking into payday loan consolidation services can be your way out of this financial rut and your ticket toward re-establishing your bearings.
Debt consolidation programs are specifically designed to help you keep up with and resolve all your previous debt and place them under one umbrella—with a single interest rate and a single creditor. You no longer have to keep monitoring dates, interest rates, fees, and other payments and will only have to track one. This debt relief solution will settle all your old debts and finally put a stop to those harassing phone calls, letters, and emails.
How It Works
Payday loan consolidation pools the money you owe into one amount that you will then owe to just one lending agency. Debt consolidation offers often provide much lower interest rates than regular payday loans and their payment terms are more flexible. You can take out one bigger amount and then split them into realistic 12 or 24-month repayment schedules so you can finally get yourself out of debt.
Take note that you should read the fine print on the debt consolidation company’s agreement because some will wait a few months before they do pay off your previous owings. Ideally, the company should pay them off within one month after you have paid your new one. If you agree to the agency not paying your previous debts until you have paid at least three months to them, you could find yourself in more financial (potentially legal) troubles.
Debt are available online, so applying for them is fairly easy and convenient. All you need to do is provide a proof of identity and a regular income to show that you are, indeed, capable of meeting your repayment schedules and amounts. You can file your application within 5 minutes and then obtain an approval in 30 minutes to one hour.
Being in debt can be an isolating experience and most who are trapped in this situation are likely to feel like they are alone in the struggle. It is, thus, fortunate that there are payday loan consolidation companies that are willing to help out—so you can get back on track and finally move forward with your life.