Posts Tagged ‘Payday Loans Consolidation’

Can I Consolidate Payday Loans

Monday, September 27th, 2010

“Can I consolidate payday loans” is a question you are sure to ask yourself when faced with a trying financial situation. When payment of loans becomes difficult, it is possible to consolidate and replace many bills by making only one payment every month through payday loans consolidation. Debts can thus be paid off much faster saving you the harassment of having to write several checks a month.

How To Consolidate Payday Loans:

1. Calculate the total debt amount on payday loans and unsecured loans by using an unsecured loan calculator.
2. Get in touch with a debt consolidation company that can assist you to consolidate payday loans.
3. This company will offer free debt counselling sessions, giving you a chance to interact with a counsellor for valuable advice on payday loans debt consolidation. This counsellor then assesses the situation at hand to decide whether a debt settlement or a debt consolidation program is more beneficial.
4. The company then negotiates with your lenders to get lower interest rates on the payday loans. This negotiation aims at allowing you to repay your principal debt together with interest.
5. The company seeks to cut down on late payment fees and formulates an alternative plan for repayment of payday loans.
6. Before starting negotiations with creditors, the payday loans debt consolidation company finds out how much you can afford to pay every month. The idea is to make a plan which will enable you to come out of debts within the shortest possible time.

Payday loans consolidation becomes a much sought after demand if you see the its benefits. The greatest advantages are low interest rates, lowered late fees and lesser number of bills to pay up.

How can I consolidate payday loans is a question answered best by the debt consolidation service provider you select.

Tips To Consider When Choosing A Payday Loans Debt Consolidation Company:

• Ensure that the service provider selected is the best in the industry and genuine. Avoid those making huge claims because they are more likely to be dishonest and frauds.
• Research on the names you can get before making a final choice. Look into all details pertaining to the company’s policies and if possible contact its clients.
• Ensure that the company abides by accounting norms. It must follow simple rules pre-fixed for calculating monthly instalments.
• Select a plan only after proper reviewing its interest rates and additional charges.

Getting multiple loans may create a major financial burden particularly when you do not have the means to pay them off. Payday loans debt consolidation is an option you should consider. It is your best bet for managing short-term loans. Try to control the urge to spend first so that you do not need to take recourse to such measures to bail you out of a financial crisis. Payday loans consolidation is your only hope for getting immediate relief in times of such financial emergency.

Payday Loans Consolidation

Monday, April 6th, 2009

A payday loan is a small, short-term loan that is intended to cover a borrower’s expenses until his or her next payday. The loans are also sometimes referred to as cash advances. The cycle of payday loans and high interest rates can leave the borrowers feeling hopeless for months or years after getting further into debt.

Advantages and Disadvantages of Payday Loans Consolidation

Debt consolidation involves taking out one loan so as to pay off other loans. This is often done in order to secure a lower interest rate, and also to secure a fixed interest rate or for the convenience of servicing only one loan. Debt consolidation is often taken by borrowers who have to pay credit card debt because credit cards carry a higher rate of interest than other form of borrowing.

Given below are the advantages of Payday Loans Consolidation

• Since in debt consolidation borrower has to pay a single installment rather than paying multiple installments it makes it easier for the borrower to remember and arrange for the finances needed for paying the loan.

• Under debt consolidation one has to pay to a single creditor which makes the job of borrower that much easier because it much easier to deal with a single creditor rather than handling several creditors and also it is easier to convince a single creditor about the delay in payment than convincing several creditors about delay in payment.

• Since interest rates are lower one has to pay and also the period for repayment is longer which implies reduced equated monthly installments thereby reducing the burden of the borrower.

Disadvantages of Payday Loans Consolidation -

• The main disadvantage of debt consolidation is that the loan will be secured against the home of the borrower, so it is important for the borrower that he or she does not default on the repayment of interest and principal amount of the debt.

• Since the repayment period is increased and one has to keep paying the installments for many years, one may end up getting frustrated with constant pressure of debt.

• Another risk about debt consolidation is the inclination by the borrower to incur new debts in the middle of repayment of the debt consolidation, because debt consolidation does not mean that borrower is exempt from the obligation to repay the debt. Borrower still needs to keep up with the monthly consolidation payment to the lender. If borrower get into new debt while he or she is still in the middle of the consolidation loan repayments than it implies he or she has added additional burden on his or her shoulders.

From the above one can see that there are both advantages and disadvantages of taking debt consolidation and the borrower should decide whether to take debt consolidation or not after carefully analyzing the above points.