Payday Loans Debt Consolidation

Dealing With Excessive Payday Loan Debt

Dealing with excessive payday debt is not at all an easy task, as the debt grows very fast within a very short period of time. With every day that is passing, a hefty amount of debt keeps on adding to the overall outstanding balance that you have on your payday loan accounts. Therefore, you will have to plan everything in a way that should help you to keep a check on this debt growth while making the repayment toward the same. It is not without reason why sixteen states have banned this form of lending programs and many other states are seriously considering banning it. Financial experts term payday loan companies as loan sharks that are there to suck every single penny that you have there in your bank account. The good news is that even if you are already knee deep in payday debt, there are still ways get out of it. Following is a brief rundown on how to manage and pay off your debts that you have acquired by borrowing easy short-term cash advances.

Learn About The Rollover Laws Applicable In Your State

When it comes to dealing with excessive payday debt, it is very important for you to be well aware of the rollover laws applicable in your state. One of the most unfair practices that most payday loan companies are involved in is that they extend the repayment period for one more month (the process is known as ‘rollover’) and then charge interest (at the same 3-digit APR) for that extended period of time, which eventually causes the outstanding loan balance to grow very fast. Some companies are charging over 600% per annum only as interest. If that is the case with you, only one time rollover can make your outstanding loan balance just double or even more. If the loans are rolled over for a couple of times, you will be drowning into a deep ocean of debt, where you will have to pay 3-4 times more money than what you had actually borrowed. Luckily, many states have now prohibited this unfair practice of rollovers. Many other states, where rollovers are allowed, there are at least restrictions on how many times the rollovers can be done by a lender. Make sure that you are aware of these laws. This way, you will be able to find out if your lender is violating the rollover laws. If yes, talk to your lender about it and ask them to get things in order as per the laws because you are not going to pay more than what yo are legally obligated to repay.

Find Out What The State Laws Say About Repayment Arrangements

While you are dealing with excessive payday debt, it is also important to note many states have made it mandatory on lenders to rearrange the payment plan for those borrowers who fail to pay off the loan in full within the set due date (even after the rollovers that were allowed). If you live in a state that has enacted laws like this, you can contact your lenders and talk about it. Discuss your financial situation with them and give them suggestions on what kind of arrangements you want to make the repayment plan affordable to you. If your payday loan company refuses to set up any such repayment plan, you can contact your State Attorney General’s office and file a complaint with them.

Explore Your Options By Contacting The Local Churches

You do not need to be a member of the congregation to qualify for any debt relief program offered by local churches. When it comes to dealing with excessive payday debt, this step can be quite embarrassing but you are still advised to go for it; after all, it is better to be embarrassed now than to get bankrupt and then get embarrassed at a later stage. Do not forget that you are not only one in America who is knee deep in payday debt and so is looking out for such options to get rid of their debt problems.

Do Not Forget The Basic Strategies

While you follow the above strategies, do not forget to implement the basic strategies as well, such as creating a tight budget and sticking to it, reducing your expenses, increasing your income (such as by getting a second job), not using credit cards anymore, avoiding impulse purchases, arranging a garage sale, and other such things. All these basic strategies will help you arrange a lot of extra cash which you can use to pay off your debts faster.

Overall, if you follow the right approach and make informed decision, dealing with excessive payday debt should not turn out to be a very difficult task for you. Just make sure that you are consistent in your efforts and show some great financial discipline while you are working on the above strategies. The more informed you are, the better you can protect yourself from the predatory payday lenders.

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