Payday Loan Consolidation | Payday Loan Help
Payday loan consolidation is of the best debt relief programs for those who are trapped in debts. If you are working and receiving a monthly paycheck, it is likely that you may get it all spent by the middle of the month.
The previous month’s pay may be exhausted and your next payday just seems so far away. When an emergency happens at such a time, you may need to take out a payday loan. A payday loan is a loan that you have to repay by the time you get your next paycheck.
Payday consolidation is a kind of loan that allows you to clear all the payday loans that you may have. You will then have enough time to clear the debt consolidation loan.
We all know payday loan debt could be quite expensive to pay back. So payday consolidation loans act as a lifeline for someone who is about to get drowned by offering what is known as a payday loan relief. In most cases, debt consolidation loans also come with a lower interest rate.
Read on to find out more about it.
How does payday loan consolidation work?
Do you have issues with multiple payday loans from online and retail lenders? If you are then you need to act fast. We can offer you a consolidation loan program that can drastically decrease the interest, fees and additional charges.
We can offer you free counseling on debt to overcome your pressing situation and put you on a repayment plan that will get you debt-free. Paying payday loan interest is no fun when it mounts up, so it is imperative you act now.
When should you get payday loan debt relief?
- When you are paying large interest on multiple payday loans
- When you want to keep your monthly income from creditors who want you to pay the debt
- When you are in deep trouble with payday lenders and collection agencies
Payday loan debt settlement pros and cons
Pros of payday loan consolidation
- No paying money upfront
- Reduction in high-interest rates
- Waiving late and add on fees
- Income will not be deducted at source
- Merge debts into one easy payment
- Less debt calls & chances of court action
Cons of payday loan consolidation
- Will not be able to take out more payday loans
- You will have to follow the plan of your consolidation company
- Your assets can be at risk
- The payment plan can be many months
More also on this nolo article.
Why payday consolidation programs are the way to deal with payday debt
There are a couple of ways to deal with your loans:
Debt consolidation program
This payday loan debt consolidation plan is a great way to pay down debt as you get a monthly payment plan suited to your needs. You only deal with one lender instead of all your creditors.
Debt consolidation loan
A loan can risk your collateral. You will need to assure the lender you have an asset they can collect on in case of default. You can get unsecured loans but you will be back at the beginning again paying high interest rates
How can Payday Champion give you great service?
- The financial adviser will outline the plan and speak to your creditors
- The financial adviser will make it clear how to proceed after negotiation with the lenders
- The financial adviser all details pertinent to your loans. This will be who, where, why, and how much
- The financial adviser will check if the lender are legitimate to try and get you off on a technicality
- The financial adviser will tell you clearly the interest you will pay in the future
- The financial adviser will see if the personal loans are legal and if not you will only need to pay back the original amount with no interest
Why go for payday loan consolidation?
If you need help with your payday debt, a consolidation loan can help you put your finances back in order. Here are the main reasons to consolidate your payday debt;
Lower fees
Most personal loans attract an origination fee. This fee is usually between 1 and 5% of the principal loan amount. But it is possible to find a personal loan for debt consolidation without upfront charges.
Flexible loan repayment terms
With debt consolidation loans, the repayment term can be up to 84 months. Payday loans on the other hand have a term of 2 to 4 weeks.
Predictable payment plan
Payday loans for debt consolidation only have one monthly payment until the loan term ends. So long as the interest rate is fixed, you can keep on paying the same amount every month.
Credit check required
As much as this appears to be a downside for debt consolidation loans, it actually isn’t. Debt consolidation lenders only offer the loan to borrowers who can afford loan repayments. They will check your credit report as well as your level of income.
Note that you can still qualify for a payday loan for debt consolidation even with a bad credit score.
Payday loan lenders don’t check your credit score. This means that they can offer the loan to anyone whether they can afford payments or not.
No rollovers
The contract is over as soon as you pay the debt. The lender closes your loan account immediately. So if you need extra cash, then you have to apply for a new loan.
What is a payday loan cycle?
You may decide to take out one payday loan to relieve a tight financial situation. Then another emergency hits, forcing you to take out a second payday loan. Now you have two payday loans to pay up with your next paycheck. Payday loans are designed to have very high interest rates.
Payday loan consolidation will drastically reduce your interest rate paid
The annual percentage rate (APR) of the payday loan is between 300%-400%, making it the highest in the market. The worse thing is most payday loans are supposed to be paid within 30 days, meaning you need to repay a large sum of money all at once.
Looking at this situation, you may need to get another payday loan to facilitate the monthly payment of the previous payday loans. Month after month, it’s a debt cycle you are trapped in.
This situation plunges you into more debt. This is mainly because of the huge interest rates typical of payday loans.
Getting out of payday debt is just pretty hard unless you get help.
How consolidation can help you
A payday loan consolidation is what people call a financial lifeline. Taking a payday loan for debt consolidation makes you breathe easier. Basically, it’s all about breaking this vicious cycle.
A consolidation loan lets you combine all your outstanding payday debts into one.
We are here as a debt consolidation company to help you with your payday loan debt consolidation.
Get payday loan help with one monthly payment
This means you now only have just one consolidation loan instead of multiple payday loans to deal with. Furthermore, a consolidation loan has a lower interest rate, allowing you to relax and not worry that things will get out of hand. You can use a debt calculator to determine how much it will cost when you go for debt consolidation.
Alternatives to payday loan consolidation:
Taking up a payday loan consolidation gives you a couple of choices to choose from. Okay, let’s face it, the most probable reason you went to a payday lender is that you have bad credit and thus you cannot get the low-interest traditional loans.
You can secure your payday loans with your collateral
The only alternatives that you have at this point is hoping you can qualify for a high-risk secure loan with a different lender. In this case, you could use the valuable items you have as collateral in order to access the loan.
This will get you the money that you need to allow you to clear up the numerous payday loans that you may have and in turn be left with this particular loan to pay as time goes by.
Personal loans are an option for payday loan consolidation
The next alternative is taking up a high risk secured personal loan. This, like the previously discussed loan, will let you sort out the sticky situation that you are currently sitting in. It gives you breathing space to relax, work and repay this loan slowly without worries of having lenders coming after your hard-earned cash.
Paying up your current debt with a consolidation loan
Consolidation loans let you get your freedom back and let you get your finances back in order. The major advantage here lies in the interest accumulations. Looking at the payday loans, they have an interest rate of about 25%, translating to an APR of about 300%.
The consolidation loan has way lower loan interest rates.
The other advantage with a consolidated payday loan is that you can repay in monthly installments without having to cough up a single big amount at once.
Future implications
You probably have destroyed your credit score when you applied and received payday loans. However, this is not always the case. This is because most lenders will not make their way to the credit bureau to report your financial situation.
Thus your credit score stays secure. Consolidating payday loans debt allow you to manage your finances and let you pay lower rates for the same debt you had.
It has a number of advantages and very few disadvantages. That is what makes consolidation loans attractive.
Consolidate your payday loans now!
Debt consolidation loans will also cost you money. But compared to the payday loan situation you are escaping from, it’s quite a small price to pay. As we said, the benefits of payday loan consolidation are more than the downsides.
