Payday Loan Consolidation: Payday Loan Help

Payday Loan Consolidation Help With Multiple Loans & Debts

Payday loan consolidation is of the best debt relief programs for those who are trapped in debt. If you are working and receiving a monthly paycheck, you may likely get it all spent by the middle of the month.

The previous month’s pay may be exhausted, and your next payday 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 pretty 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 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 critical 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 you must act now.

When should you get payday loan debt relief?

You can get a payday loan to:

  •  Pay considerable interest on multiple payday loans
  •  Keep your monthly income from creditors who want you to pay the debt
  •  Pay all your outstanding debts

Pros of payday loan consolidation

  • No paying money upfront
  • Reduction in high-interest rates
  • Waiving late and adding on fees
  • Income will not be deducted from the source
  • Merge debts into one easy payment
  • Fewer debt calls & chances of court action

Cons of payday loan consolidation

  • I 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

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 excellent service?

Here is how we can help you:

  • Outline the plan and speak to your creditors
  • Make it clear how to proceed after negotiation with the lenders
  • Details pertinent to your loans. This will be who, where, why, and how much
  • Check if the lender is legitimate to try and get you off on a technicality
  • Tell you the interest you will pay in the future
  • 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 period 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 isn’t. Debt consolidation lenders only offer loans 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 short-term 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 enormous interest rates typical of payday loans.

Getting out of payday debt is just pretty hard unless you get help.

emergency-loans

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.

Personal Loans for Bad Credit

Alternatives to payday loan consolidation:

interest rateTaking 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 are 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 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 significant advantage here lies in the interest accumulations. Looking at payday loans have an interest rate of about 25%, translating to an APR of nearly 300%.

The consolidation loan has way lower loan interest rates.

The other advantage of a consolidated payday loan is that you can repay in monthly installments without having to cough up a single considerable amount at once.

How to Consolidate Payday Loans?

The first step is to find out what loan consolidation options there are. Some companies offer a single loan payment option, while others allow you to choose from several different repayment plans. You’ll also want to look into whether or not you qualify for any loan forgiveness program.

The second step is to determine which options would work best for you. For example, some companies offer flexible repayment programs where you can spread the cost of your loan over multiple months, while others offer fixed monthly payments. It’s important to note that you won’t save any money even though you may have a lower total amount due when using a flexible plan. This is because you’re essentially borrowing the same amount every month.

Once you’ve decided on an option, you’ll need to complete the application process. Most companies will ask you for basic personal information such as your name, address, phone number, email address, employment status, income level, and so forth. Depending on the company, you may also need to submit copies of your previous tax returns, proof of identity, and proof of employment.

Once you’ve submitted everything, you’ll likely get a response from the company within 24 hours. In most cases, you’ll either hear back about whether or not you were approved for a loan or asked to come back later. If you’re approved, you’ll usually get a letter detailing the specifics of your new loan agreement.

You’ll probably also be given a date when you’ll need to make your first payment. Remember that you’ll need enough time to pay off your entire loan before that deadline arrives. So don’t wait too long!

What Is the Best Way to Pursue Payday Loan Consolidation?

There are two ways to pursue payday loan consolidation:

  • Go directly to the lender.
  • Use a debt management firm.

Going Directly to the Lender

If you decide to go directly to the lender, you’ll typically have to fill out a lengthy application. Once you do this, you’ll often be required to send them a copy of your paycheck stubs or bank statements.

If you decide to go this route, you’ll need to call the lender and tell them that you’d like to consolidate your debts. They’ll then give you instructions on how to proceed.

Using a Debt Management Firm

A debt management firm will help you negotiate with creditors on your behalf. When you use a debt management firm, you’ll still need to apply for a loan directly from the creditor. But once you’ve been approved, the debt management firm will handle the rest.

They’ll review your credit report and financial situation to see if they feel confident in their ability to negotiate a better deal.

They’ll then contact each of your creditors and try to negotiate a better interest rate or lower minimum payment amounts.

What Are the Debt Consolidation Loan Types?

The three main types of loans available for consolidating your debts include installment loans, home equity lines of credit (HELOC), and revolving lines of credit (RLOC). Each has its benefits and drawbacks.

Installment Loans

An installment loan is similar to a traditional mortgage. You borrow a certain amount at a set interest rate and pay it back over a specified period.

This type of loan works well for people who want to pay off their debts quickly. However, because these loans require monthly payments, they can be expensive.

Home Equity Lines of Credit (HELOC)

A HELOC allows you to take advantage of the equity built up in your house by borrowing against it. The amount you can borrow depends on the value of your property.

Typically, you won’t have to put down any collateral. This means you don’t risk losing your house if you default on your loan.

However, there are some downsides to using a HELOC. For example, you may only be able to borrow what’s left after paying off other debts. And since you’re borrowing against your home, you could spend more than you originally borrowed.

Revolving Line of Credit (RLOC)

An RLOC is different from a HELOC because you don’t have to repay any money you borrow. Instead, you draw as much as you need until you reach your goal.

You can use an RLOC for anything from paying bills to buying furniture. It’s essential to keep in mind, though, that you should never spend more than you plan to earn. Otherwise, you could find yourself in serious trouble.

How Does a Consumer Proposal Consolidate My Debt?

If you’re like most consumers, the thought of consolidating your debt is daunting. Knowing how it works and what to expect when you consolidate your debts can be confusing and overwhelming. The good news is that there are many ways to do so successfully.

One option is to work with a consumer proposal company. These companies specialize in helping consumers get out of debt without having to file for bankruptcy.

When you work with a consumer proposal provider, you’ll first meet with one of their representatives. They’ll review your current finances and explain how a consumer proposal can help you.

Next, you’ll complete a questionnaire about your circumstances. Based on this information, your representative will recommend which type of consumer proposal best suits your needs.

Afterward, you’ll submit a proposal to your creditors. Your creditor will review your submission and decide whether to accept it. They’ll send you a letter confirming your agreement if they agree to participate.

Once your creditors agree to participate, you’ll receive a single payment that includes all your outstanding balances. After that, you’ll make regular payments to your creditors.

The final step is to pay off your remaining balance. Once you’ve paid everything off, you’ll no longer owe any money to anyone.

What Debts Can You Consolidate in a Consumer Proposal?

A consumer proposal is a bankruptcy alternative. It allows you to propose a payment plan for your debts and lets creditors know that you are willing to pay them back. You can use a consumer proposal if you have a lot of credit card debt or medical bills.

It also makes sense if you have a high-interest rate on your loans. In these cases, a consumer proposal can save you thousands of interest charges.

Future implications

loanYou probably destroyed your credit score when you applied for 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 loan debt allow you to manage your finances and let you pay lower rates for the same obligation you had.

It has several 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 a pretty small price to pay. As we said, the benefits of payday loan consolidation are more than the downsides.

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Content Editor and Writer at Payday Champion | + posts

Aubrey Saffa Bender has been a freelance journalist and journalist since 2013. She writes about topics that range from personal finances and education to technology and business. In her work for PaydayChampion, Aubrey primarily draws from her writing experiences regarding mortgages, home purchases, and real estate. She graduated with a B.A. with a major in English at The University of Colorado Boulder.

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