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.

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Posted in Debt Consolidation | 3 Comments »

3 Responses to “A Loan To Defeat All Loans – Debt Relief Loan”

  1. Robin Williams says:

    I want to be a permanent guest author in your site: http://www.debtconsolidationpaydayloan.com/blog/, only if you permit me. My each post will contain 400 words above and totally original and the article will be on the theme of your site.

    Please contact me at my mail soon.

    Robin Williams

  2. admin says:

    If the articles are owned by you and published no where else, you are welcome

  3. Michelle says:

    Taking out many personal loans can add up quickly. Having them consolidated to one payment can really help ease the tension of debt and get them paid off sooner.

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