Archive for September 23rd, 2010

Using Consolidation Debt Loan Payday

Thursday, September 23rd, 2010

Do you have a large payday loan to repay? Consider consolidation debt loan payday. In 2009, the industry analysts reported that there are about 20,600 payday loan outlets in the United States with the annual loan volume of $30.3 billion and roughly $4.8 billion being the loan fees.

Given the money in loan fees and the number of loan outlets, it’s obviously a paying business. In spite of these loans being extremely expensive as compared to other cash loans, they are very popular. Ease of access with very little background check and paperwork are the prime reasons for this popularity. Sixteen US states and the District of Columbia protect borrowers by enforcing a cap on payday loan rates; service members are also protected by the federal laws. Besides this, Consolidation debt loan payday is another efficient way to help with payday debt.

Long durations and several rollovers lie at the very core of a successful payday loan business. The longer the borrower takes to repay the original sum, the more the interest and other charges add up. For the borrower, this means mounting debt and a vicious cycle that is very hard to break. Usually, lenders assign the task of recollection to a collection company who keep calling the borrower. A consolidation debt loan payday company can make multiple debts into one by handling all the debts for the borrower. The borrower only makes one monthly payment to the consolidator at a low interest rate. The company also negotiates for lower rates and handles all communications with the lenders.

The Federal Trade Commission, enforcer of the Fair Debt Collection Practices Act, offers these tips for consumers:

  • Choose a genuine company. The company must provide its name, street address, and phone number.
  • Always protect your personal information. Share your credit card and other personal information only with the companies you know and trust; never share it in an email.
  • Don’t be in a hurry, take your time. Read and understand the small print carefully before signing.
  • Select a plan that can be controlled by you. Consider factors such as interest rates.
  • Keep a close watch on the company activities. Calculate your monthly installments yourself.
    Report fraud to the authorities.

Filing for personal bankruptcy is the last resort to manage debt. Its results are long-lasting and far-reaching: bankruptcy information stays on the individual’s credit report for ten years. This can make it difficult to get credit in the future, buy a house, get life insurance, or at times even get a job. Using consolidation debt loan payday is a much easier option and if used cautiously can help ease the burden of a payday loan.