Payday Loans Debt Consolidation

Consolidating Payday Loans In Las Vegas

In the last few years, almost every state has introduced some laws to regulate payday lending. However, when it comes to consolidating payday loans in Las Vegas, there are no specific laws to follow. Las Vegas is one of those places in the United States of America, where the number of people struggling with extremely high-rate payday debt is very high. Though short-term cash advances are advertised to be used as a financial tool to meet some urgent yet temporary financial emergencies, many people have started using it as an easy source of money. They are borrowing cash advances to go for vacation also. What is worse, they are even borrowing these easy small loans to meet “their gambling needs”. Many others are borrowing it so that they can pay off other high-priority loans in time, such as mortgages and car loans. All such activities are worst financial moves that will only push you toward a deeper debt trouble. However, no matter why you are knee deep in payday debt now, the good news is that there are several payday loan debt consolidation programs available in Las Vegas also, which can help you pay off your debts and regain control of your finances. Following is a brief rundown on how to go about it.

Review Your Credit Report

When it comes to consolidating payday loans in Las Vegas, the first thing you have to do is to do a thorough review of your credit report. As per the laws applicable in the United States of America, you are entitled to get a free report from the three major credit bureaus, at least once every year. However, if you want to study your FICO score, you will have to buy it. A Fico score is a 3-digit number. If it is something above 600, it means you have a decent if not excellent credit score. However, if it is below 600, the score is poor. If it is above 720, it is excellent.

Do A Thorough Analysis Of Your Current Payday Loan Contracts

If you are seriously considering consolidating payday loans in Las Vegas, you must also thoroughly review your existing payday loan contracts. There are certain laws that regulate payday lending in Las Vegas. For example, it is illegal for lenders to extend the repayment period for more than two months from the date of initial due date. If they keep extending the due date again and again and thus keep charging interest for the extended period of time, it only means that they are doing it illegally. Besides that, it is also important to note that the Nevada payday loan laws make it mandatory for the payday lenders to offer an affordable repayment plan to those borrowers who fail to make the repayment in full even after the 2-month extended period. Look at the loan contracts to find out the actual provisions of such repayment plans and if that can work in your favor. If it does, there is probably no need to go for any payday loan debt consolidation program.

Never Consolidate By Borrowing Another Much Larger Payday Loan

One of the worst mistakes that people often make is that they contact their existing payday loan creditors and request them to issue another much larger payday loan so that they can pay their previous payday loan dues. This is not at all the right way of consolidating payday loans in Las Vegas. In fact, many states have prohibited payday lenders from offering any debt consolidation program to the borrowers. Though such practices are not prohibited in the state of Nevada, it is important to note that the maximum loan amount that the lenders can issue must not be larger than 25% of your expected gross monthly income. If they are issuing you a much larger loan as part of their consolidation program, you can actually file a complaint against them. You can contact the Nevada Financial Institutions Division through phone at (702) 486-4120 and through fax at (702) 486-4563. Their office is located at 2785 E. Desert Inn Rd., Suite 180 Las Vegas NV 89121.

Overall, if you are considering consolidating payday loans in Las Vegas, you must keep in mind the above things.

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