Payday Loans Debt Consolidation

Caught In Payday Loan Debt?

Many Americans resort to to get cash in urgent situations during the last days of the month before payday. It is an easy way to get cash and also one of the major reasons they fall into the debt trap. Most people apply for these loans without first getting properly acquainted with their terms and conditions. By making an uninformed decision they find themselves in a very serious and frustrating situation, unable to pay their existing loans and unable to get new ones due to poor credit scores.

It is a well-known fact that payday loans have the greatest rate of interest of any loans on the market. Once you fall into default, it is quite likely that your lender will claim at least half of your paycheck just for repayment of interest. Because of this, you end up paying many times more than what you initially borrowed.

Tips For Payday Loan Debt Solutions

• The best solution is to borrow money from your relatives and friends and use that to repay all your debts. This is the least expensive option and a very effective solution. You will be free of all your creditors in a short time and it is less likely that your friends will ask you to pay interest on the loan. You can return them the borrowed money at your own convenience.
• Do not sit back and watch your debts accumulate. The payday lenders will most likely report you to various organizations and your credit scores might suffer for up to 10 years. Not to mention that you might even go bankrupt due to the ridiculously high rates of interest.
• You can also seek professional help from a reputable company. These companies specialize in helping people get out of their pay day loan debt.  The most important benefit of using to these companies is that they will contact your lenders and ask them not to harass you with any more with collection calls. They will try to renegotiate your interest rates with all your creditors and help you get a practical and viable monthly payment.
• If you see no other way, then, and only then, should you file for bankruptcy? However, you should try to see what other options you have available. Do not take any rash steps in frustration.

Debt Consolidation

When you , you will open a new bank account in which you will deposit as much money as you can as frequently as possible. Your debt settlement company will then use this money to pay off your debts to all your lenders. The most important feature of this method is that you do not have to pay 350% of your principal amount as interest. Instead, you will get a new and viable interest rate and a manageable monthly payment.

While there are many proven ways to help you get out of  pay day loan debt, these are not any good if you do not take an active role in the process. No company will be of any help to you if you yield to frustration or simply give up. The most important thing is that you do not get depressed—there is help available. Good luck with your future!

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Posted in Consolidating Payday Loans, Payday Loans Debt Consolidation | 4 Comments »

4 Responses to “Caught In Payday Loan Debt?”

  1. Ruby says:

    Wonderful tips for Payday Loan Debt Solutions ….. I do agree that we should avoid taking loans but when emergency arrives … we don’t have a choice! It is always better to save certain amount on a regular basis, so that the same money can be used in rainy days.

    Taking help of relatives and friends is a very good option though they will only help you in case you have good credibility. Pay on time and as per commitment… then only people will be ready to help.

    Maintaining a diary which maintains our record of monthly debts and keeping a regular check on it can definitely save us from chaos.

  2. abel says:

    There are several pay day loans on me which I am not be able to pay off and I have to keep rolling them over. I want to know what to do for a settlement with the payday loan companies?

  3. tom says:

    Collector can think only how to collect a payment from you. And what are the circumstances may be don’t give your debit card number to the collection firm. There is a law which is called fair debt collection practices act that requires the collector should provides some of the items outline below in written that is the amount of the debt, name of the creditor, a statement after 30 days of the initial contact to dispute to validity of the debt or assume that the debt is valid. A creditor also provides verification of the debt by mail. If you dispute the debt in between the 30 days of the debt, legally the collector can not continue the effort of collection until your debt not is verified. For the pay day creditors their responsibilities vary by state. The state laws are in adequate in this field. You can also take a help from Dodd-Frank Wall Street Reform and Consumer Protection Act. If your creditor is a member of CFSA (Community Financial Services Association of America) then you can request for the extension of payment plan. The plan will be extended your loan for 4 pay day cycles without any extra charges. So my suggestion is that to break the cycle of pay day loan if you can borrow the total amount you need from other source.

  4. [...] In Payday Loan Debt? Posted on September 14, 2010 by bestcredit12 Many Americans resort to pay day loan debt to get cash in urgent situations during the last days of the month before payday. It is an easy way [...]

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