Payday Loan Debt Help Blog

A Loan To Defeat All Loans – Debt Relief Loan

Payday loans, fax-free payday loans, and instant online payday loans are everywhere, be it on the Internet, newspapers, or television. Today, when the economy is in turmoil, these loans look like the saving grace for people who are unable to meet their expenses. However, in reality, it is quite different. People are forced to take debt relief loans to come out of their payday debts.

The Reality Of Payday Loans

These loans trap the debtor into a whirlwind of loans where the debtor is forced to take one payday loan after another to meet the expenses. The interest rates are exorbitant and they actually take away a big chunk of the debtor’s paycheck. This again puts the debtor in a cash crunch and he or she is again forced to take another payday loan. This goes on until the debtor is totally trapped with one loan on top of another and no way to pay it out. Sometimes, debtors pay interest rates as high as $700 to 800.

There are many payday loan companies who claim that taking a payday loan help debt consolidation. However, the reality is quite different. These loans should never be confused with debt relief loans. Both are entirely different from each other, the commonality only being the fact that both are loans. Payday loans are short-term loans taken with a person’s paycheck as collateral, while consolidation loans are actually meant to organize the loan payment process when several loans are involved, and eventually bring the debtor out of debt.

Payday Loan Consolidation

Payday loan consolidation companies are experts in dealing with various kinds of creditors. They speak the creditors’ language and at the same time get the loan consolidated in the debtor’s favor. Their main aim is to ensure that the debtor is debt-free at the end of the debt relief loan period. For this, they usually set up an account in which the debtor deposits a fixed sum ever month. When the sum is sufficient to pay off a particular loan of the debtor, the consolidators make the payment. This process continues until all the loans are paid off. Once the debtor’s loans are taken over by a payday loan consolidation firm, there will be no further communication between the debtor and the creditor. All the correspondence will be though the consolidators. This also helps ward off unwanted debt collectors.

Consolidation loans are useful for merging a person’s loans and getting out of tight financial spots. Try not to be fooled by the attractive captions and ads in favor of payday loans. However, if the trap is set and you are caught, plan your escape through debt relief loans.

Payday Loan Debt Help Blog

Do Not Put Up With Debt Collectors Harassment

There was an emergency and the need arose to take a payday loan. It seemed to be the fastest and the best option available then. However, now the debt collectors’ harassment is horrendous. The fact that using third-party debt collectors is against federal laws does not seem to matter to them. The Fair Debt Collection Practice Act clearly states that it is against the law for the creditors to contact third-party debt collectors to collect debts. The act further states that the use of harassment and threats is a violation of the law.

Harassment Tactics Of Debt Collectors

Debt collectors harass their client’s customers using various tactics. They send constant reminders through the mail. They call home everyday and sometimes twice or thrice a day. They are known to use profanity, humiliate publically, tarnish reputation, and give out false information about the debtor to outsiders, all with the intent of coercing them to pay off the debt.

The Way Out

Don’t think that there is absolutely no way out from the harassment of debt collectors who circle you like vultures. There are several options available.

1. Filing for bankruptcy is an option but need not be always a viable one. Payday loan bankruptcy is a common thing nowadays. Debtors who are neck deep in debt and who are constantly being harassed by debt collectors apply for bankruptcy to rid themselves of the trouble.
2. Another option is to report against the debt collector for violation of the law to the state Attorney General’s office. You can also send a cease and desist letter to the debt collector’s office. Although debt collectors’ harassment is a violation of the law, not everyone has the time or the money to go after the law, especially when a person is caught in debt.
3. A debtor can also approach payday loan consolidation lenders. The thought might occur—“Why take another loan when you are already loaded with debt?” This debt is quite different. Consolidation lenders help debtors to get out of their mess. They liaison with the creditors and get the debt collectors out of the picture. They set up a system through which the loans are paid off and there is no further need to contact the creditors. They charge lower interest rates and within a maximum period of 12 months get the debts discharged.

Do not fear debt collectors’ harassment. They can be easily managed through federal laws. A debtor can also get out of the trap of payday loans through loan consolidation companies or by filing for bankruptcy.