Posts Tagged ‘payday loan debt counseling’

Do You Require Payday Loan Debt Counseling?

For an average American, it is not a very unfamiliar experience to feel overwhelmed with monthly bills and various other types of debts. Payday cash advances are very common, and an interesting fact is that a vast majority of consumers borrow it and eventually get trapped into a nasty cycle of debt. The financial liabilities grow to such heights that it becomes almost impossible to handle things on your own. This is where you may like to get help from a payday loan debt counseling expert. However, if you are still not sure whether you should use their services or not, the following information will help you make an informed decision in this regard. These are some very common warning signs, which indicate that you need help from a debt counselor.

You Are Making Just The Minimum Payments On Your Payday Debts

It is very important for you to understand that the outstanding debt balance on payday loan accounts multiplies itself very fast because of the sky-high interest rates, hefty penalty charges and different types of additional fees. Therefore, if you are paying just the minimum payments required by the lender, you will probably never be able to get rid of your debts. For example, if you borrow $500, you will be required to pay back around $800 on the next payday. If you do not pay off the debt on its scheduled due date, your lender will probably encourage you to make a certain minimum amount of payment to get an extension in the repayment period for thirty days. As per our example, if you pay $200 now and get a 30-day extension, your current outstanding debt balance will be $600. These extended thirty days will accumulate an extremely high amount of interest and other charges, which will cause the outstanding debt balance to grow to new heights, somewhere around $1000. If you again make a certain minimum payment, say $300, the remaining balance of $700 will rollover for another month, which will again grow bigger on the next due date, somewhere around $1200.. and so on. As you can see, there is no end to this cycle. If you keep on making just the minimum payment required, you will always be stuck with your debt; in fact, your payday debts will

actually keep growing despite the fact that you are paying a significant amount of money every month. Just a $500 of small payday loan can cost you a fortune if you do not handle it carefully. If you are stuck in a situation like this, it is a clear sign that you need help from a payday loan debt counseling expert.

Even 20% Of Your Net Monthly Income Is Not Enough To Meet Your Debt Obligations

As per experts, you should never borrow more debts than you can afford to repay by using 20% of your net, take home monthly income. If you are unable to clear your payday debts and meet other debt obligations with that much money, it is another indication that you need payday loan debt counseling.

You Are Taking More Payday Loans To Meet Your Expenses

Are you suffering from bad credit? Are you facing difficulty in even meeting your regular necessary monthly expenses? Do you always borrow an “easy” payday loan to get that extra money needed to pay off your existing debts and to meet your expenses? If the answer to all these questions is ‘yes’, you should immediately contact a payday debt counselor for help.

If you are frustrated and have lost all hopes of getting your finances back on track on your own, only an experienced payday loan debt counseling expert can educate and guide you on how to repair the financial damages. They will review your finances and will help you prepare and stick to an efficient budget plan. They may even contact your creditors and negotiate better terms so that you can repay your debts faster.

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