Payday Loans Debt Consolidation

6 Reasons Why You May Like To Consider Debt Consolidation Pay Day Loans

If you are looking out for ways on how to get rid of your debt problems, where the main culprits are the short-term cash advances with sky-high interest rates, you may like to consider debt consolidation payday loans. These loans work similar to any other debt consolidation program. Likewise, the only difficult thing here is to choose a genuine, reputable company. (Here is .) A good consolidation program can bring an array of benefits for you. Having said that, the best program for you is the one that offers you these benefits. Here you go.

Reduced Interest Rates

When you consolidate your outstanding dues on multiple short-term cash advances, the biggest benefit is that you end up paying interest at an overall very low rate. For example, if you owe three payday loans of $400, $300, and $300 with interest rates of 200%, 250%, and 300%, your loan may be consolidated into a single loan of $1000 at say 30% or even less. You must be wondering how. Well, it may look like magic, but it is no magic. There are several reasons why you creditors may just agree to accept repayment at a much lower rate. The most common reason is that – they just want their money back even that means a little less profit. The companies that offer debt consolidation payday loans know how to convince lenders for this. They are experts in state laws that regulate the activities of payday lenders and they know how to put pressure on lenders to agree to a repayment plan that is affordable to you.

Affordable Monthly Payments

Many states have made it legally mandatory for the payday lenders to offer an affordable repayment plan if the borrower is otherwise unable to pay off the debt. You can find out the here. Even if your state does not have any legal provisions regarding this, debt consolidation experts can still convince your creditors to make the repayment plan much easier for you.

Just One Payment Every Month

As part of the process of debt consolidation payday loans, you are required to make just one payment every month to your consolidation company. This is an aggregate sum of money toward all your dues. After receiving that payment from you, the company then makes the necessary payments to individual creditors.

Penalty Charges Are Waived Off

Even the hefty penalty charges and other such fees are also waived off in most cases. Even if you are a bit unlucky, the charges are still at least likely to be reduced to a very low amount.

No More Collection Calls

Since you have started making the repayment, the collection calls will automatically be stopped. In fact, there is no need at all to have direct contacts with the creditors or the collection agents. If they have any issues, they will be communicating with the company you have signed up with for debt consolidation payday loans.

Better Credit Score

Once you get current with your debt accounts, it will obviously have a positive impact on your credit report. You will see a significant rise in your credit score.

Considering all the above benefits, you also get a bonus – planning and implementing budget plans become much easier for you, as you do not have to spend time in managing your debts. There is just one payment you have to make every month, and that, is completely affordable. So, you have plenty of time to focus on other important things and get your finances back on track.

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Posted in Consolidating Payday Loans, Payday Loans Debt Consolidation | 3 Comments »

3 Responses to “6 Reasons Why You May Like To Consider Debt Consolidation Pay Day Loans”

  1. [...] you are still not sure whether you should really go for any consolidation porogram at all, here are 6 reasons why you may like to consider [...]

  2. karen williams says:

    I have 9 pay day loans nd want toconsolidate the paymens. Please help

  3. richard says:

    “Debt Consolidation can be such an easy and beneficial process”. Yes it can be. The time when you had taken the loan to fulfill your need is over and now paying of the heavy installments is giving you trouble. No need to worry, the solution is Debt Loss. It can be very beneficial for you if you select a company with reputable and spotless careers in the field of Debt Consolidation. Once you select a company and hand over your case to them, you can get rid of the tensions. There are many positive points for choosing a debt consolidation program like company can settle the creditors to an affordable installment. This can be done by mutual discussion. You will have to give low interest rate because the whole amount is consolidated into a single amount. If you do not accept the process you can go for the monthly installments. This installment will be paid to the company and the dispersal among the creditors will be done by the company itself. Any body going for Debt Consolidation will feel himself free from the trap of payday loan and can concentrate on the repair of his credit score. As mentioned in the article, Budgeting will also become easy after Debt Consolidation.

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