Payday Loans Debt Consolidation

Who Can Consolidate Faxless Payday Loans?

There are many people out there who are knee deep in payday debt and just do not know how to get out of it. Many even start considering bankruptcy as the only option. There are also many others who are aware of the various debt consolidation programs but have no idea if they can use such programs to consolidate faxless payday loans also. First of all, it is very important for you to understand that just because there is a “faxless” tag attached to the cash advance program you signed up for, it does not mean that they are special category of loans. They are still payday loans. Lenders often use such tags only to attract more customers. Payday loans are available with various other tags also, such as “no credit” payday loan, “no doc” payday loans, “bad credit” payday loans, “paperless” payday loans, and others. You should not get confused with such tags. No matter which of these tags have been used by your lender, there are ways to consolidate your debt if otherwise you are unable to make the repayment. The good thing is that there are no specific eligibility criteria to qualify for such payday loan debt consolidation programs. Following is a brief rundown on how to go about it.

Know How Much Outstanding Balance (In Aggregate Total) Is Due In Your Name

When it comes to working on your strategies to consolidate faxless payday loans, the first thing you have to do is to find out the total outstanding balance due in your name. You can do this by adding the outstanding balances of the multiple cash advance accounts. However, since the rate of interest on different accounts may vary, you must also do a thorough analysis on how fast your debts will actually grow if they remain unpaid. It is very important to note that there are several different types of payday loan debt consolidation programs available out there. You must have a thorough understanding of how much debts you have and what terms and conditions apply to individual debt accounts in order to choose the best consolidation program for your situation. As a general rule, you will have more number of options if you owe a very high amount of debt. It means if you are in an extreme situation where you are considering going for bankruptcy, the chances are that there are plenty of debt consolidation alternatives available for you.

Use Your Credit Score And Home Ownership In Your Favor

If you are planning to consolidate faxless payday loans, you can easily qualify for some great deals if you have a good credit score. If you also own a home, you can use it in your favor. Now, many of you might be wondering how you can have a good credit score when you have already missed several payments toward payday debts. Well, an important thing that people often do not notice is that failing to pay off payday loans usually do not hurt your credit score because most lenders never report such things to the three major credit bureaus. Therefore, if you have been making payments toward other conventional loans, such as mortgage and car loan, the chances are that you still have a good credit score. You can check the same by reviewing your credit report. A good credit score can help you qualify for a very low rate consolidation loan. The rates and other terms can be much more favorable if you agree to use the equity in your home as collateral. The basic concept is a simple one. You borrow a low rate loan and then pay off all your payday debt. This way, now, you end up having just one loan, where you have to make a very small monthly payment every month. This strategy can easily put you on the path of fast financial recovery.

Negotiations With Creditors

However, obtaining one big low rate loan is not the only option to consolidate faxless payday loans. If you have a bad credit score or do not have any home equity, you may still have some options. Many debt consolidation agencies these days work as mediators between you and your payday creditors. They negotiate the rates and other terms with the creditors and convince them to waive off late fees and other penalty charges, reduce the interest rate, and allow you more time to repay in easy monthly installments. This negotiation often works because even payday creditors are more interested in getting their money back. As part of the process, you are asked to make a single consolidated monthly payment to the debt consolidation agency, which then disburses the payments to your creditors.

Overall, it is very much possible to consolidate faxless payday loans. Anybody who is struggling with payday debt repayment can use these programs to get rid of their debt problems.


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