Payday Loans Debt Consolidation

How To Lower Cash Advance Rates On Payday Debts?

As per recent statistics and reports, over 40% of all payday loan borrowers end up renewing their loans for four or more times. Because of the sky-high cash advance rates that lenders charge, the total outstanding debt multiplies itself very fast and the balance becomes much bigger and bigger with every passing month. Even if they make a partial payment every month, the eventual balance keeps on growing and soon things go out of control. The future paychecks that you submit to get these types of loans are used as collaterals by your lenders. When these paychecks bounce due to insufficient fund in your bank account, things become much more horrible. After all, when a check issued by you gets bounced, it is considered as a criminal offence on your part.

Comparison Of Rates With Other Types Of Loans

Credit cards charge interest at up to 16% per annum. Personal loans charge up to 28% per annum. Even pawn loans come at inertest rates of up to 180% per annum. But, cash advance rates usually range from 450 to 700 percent. In fact, the rates are much higher in several other states. Though every state has enacted certain payday loan laws, some states still allow cash advance lenders to charge interest at 4-digit annual percentage rate.

Negotiating A Lower Rate With Your Payday Lenders

When it comes to negotiating a lower rate with your payday lenders, there are several factors that you need to take into your careful consideration, such as your state payday loan laws, your income and other financial obligations, your negotiation skills and the debt relief programs offered by various payday debt consolidation companies. But overall, your awareness is the key factor. The more aware you are about the laws and your legal rights, the better strategies you will be able to implement.

Partial Payment And Roll Over Of Remaining Balance

In general, payday lenders never agree to reduce cash advance rates. Every time you contact them and place such a request,

they will give you an option to make a partial payment and rollover the remaining balance till the next pay day. But, rolling over of payday loans only traps you into a much deeper debt problem. So, you are advised not to accept partial-payment offers.

Rollover Laws Vary From One State To Another

While you are trying to negotiate lower cash advance rates on payday debts, you must also look into the payday loan laws of your state. In many states, such rollovers have been declared as an illegal activity on part of payday lenders. If you are a resident of one of those states, you can talk to your lenders about it and refuse to accept any extension in due date. In cases where payday debts are not rolled over, the debts go to collection department. Certain collection charges apply (here again, there are legal limitations as per state laws), but you can never be charged additional interest for the delayed period – not at the same high rate at least. When you are equipped with knowledge and awareness of the laws, it will become very easy for you to win a favorable negotiated deal with your lenders.


Help From A Professional Negotiator

If you are not confident about your negotiation skills or if all your efforts go in vain, it is always advisable to get help from a professional negotiator, which generally means consulting with a debt relief organization. In most cases, such organizations do not only provide credit counseling services, but also offer a wide array of debt consolidation and settlement programs. If it is a legitimate, reputable organization, it can definitely provide you an affordable solution to pay off all your payday debt (even if it is in thousands of dollars). The best thing is that such companies do not charge any fee online pharmacy in advance. The initial consultation is offered to you free of cost.

Overall, it is not completely out of the realm of possibilities to negotiate lower cash advance rates with payday lenders. But, you must work on your options carefully. Going for a free consultation with a reputable debt help company is always a good idea, as it will help you get a better understanding of your options.

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