Your ultimate guide to national payday loan relief
A payday loan refers to advance money borrowed before your next paycheck. The money can help fund your expenses or emergencies, and you must repay them after receiving your next paycheck. These short-term loans are easy and fast to obtain, making them very popular. In addition, their rates are often lower than other kinds of loans.
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Why are payday loans very dangerous?
While payday loans are known to offer easy and quick cash, they may give you the worst experience. If you fail to pay them back in full or on time, they can be expensive. In short, the loans bear very high-interest rates, which may vary from about 28 to 35%. Besides, an average payday loan charge exploitative rate of nearly 398%.
By applying for a payday loan, you probably enter into a financial battle with your loan providers. Some lenders may demand to access your bank account to absorb your income if you fail to pay the loan. Because of that, you have to pay back a hefty amount in a short period just because you need money quickly.
Ways through which payday lenders will attract you
Payday lenders understand what they do when they try to provide their pitch to you. They claim that they can help you with your financial status by offering some payday loan assistance. However, it only takes less effort to transfer some extra cash to your bank account to allure most users easily.
They also attract you through numerous advertisements on radio or television. The lenders claim that the 14-day loan period can solve many financial problems. But in reality, these short-term loans come with high interest rates that no one could ever have.
Advantages of payday loans
Although payday loans have high risks, they can be beneficial to you in difficult situations. They can help you with:
- Short-term financial problems, such as unexpected medical bills or car breakdown;
- Purchase of everyday items like groceries or child care expenses;
- Provide a backup when you have overdrawn your checking account
In other words, if used wisely, payday loans are a great financial tool for you.
Disadvantages of payday loans
- The most obvious con of payday loans is the high risk of getting into expensive debt.
- Most payday loan lenders require 18-65 years old and have a job with a steady income.
- If you have no credit history or bad credit history, you may also be eligible for the loan.
What is payday loan consolidation?
If you have taken a lot of payday loans and cannot pay them off each month, the best solution for your problem is to consolidate all your payday loans into one loan. If you choose this method, it may save you money in interest charges and other financial challenges.
What are the pros of payday loan consolidation?
- Lowers the sum of the debt
- Allows you to pay a low amount every month
- Prevents lawsuits and bankruptcy
- Boosts your credit status
- You may get free professional credit counseling
- Stops automatic debits
Features of payday loan consolidation
- Reduces your monthly payments
- Entails all increasing payday loans
- The lower interest rate on loans
- Terminate all unpaid loans or excess fees
- Limits harassment from lenders
How payday loan consolidation works
The procedure is straightforward:
You start by finding out how much amount of money you already owe to different lenders. Then you look for suitable options to help you repay your payday loans. You also help draft a plan to avoid payday loans to get rid of your payday loan debt’s expensive and stressful cycle.
Next, you’ll join a Payday Loan Relief Program.
After that, you’ll talk to your payday loan lenders and work out a negotiated consolidation arrangement.
Final thought
When looking for a suitable payday loan, you have to consider the following qualities of a good debt consolidation company: excellent customer care service, incredibly transparent costs, and charges.
Additionally, when choosing the best debt consolidation company for your payday loan relief, you have to: research the company thoroughly and measure your ability to pay your debt basing on your income, among others.
