Although payday loans can be extremely helpful in situations where funds are needed quickly, they can quickly turn into an overwhelming debt. The majority of payday loan companies charge high interest and penalty amounts which begin adding up as soon as the first payment is missed. As frustrating as this can be, there is an up and coming solution to this nasty type of debt. The solution is known as payday loan consolidation and it involves negotiating directly with your payday loan lenders to reduce your overall balances so that your payments can be consolidated into 1 per month. If you are looking more information on getting help with payday loans then fill out our no obligation form or call our toll free number today! We can connect you with a company that will help with payday loans.
A payday loan debt consolidation allows you to pay just one payment a month to the payday loan consolidation company that you hire and they will be responsible for correctly disbursing it. Payday loan debt consolidation also reduces the stress of constant calls, emails, and letters from your payday loan lenders. This typically happens when your consolidation company contacts your lenders to inform them that you are making strides to paying them back. If you have an increasing amount of debt that stems from various payday loan lenders and you do not know how you will ever pay it off then you may need help with payday loans. The only other solutions to payday loan debt are 1) file bankruptcy, or 2) pay the loan off.
Once you decide that you need payday loan debt assistance you can fill out our form or call our toll free number so that we can match you up with one of many payday loan consolidation companies. Here’s how the process works from there:
Step #1 – You provide the payday loan consolidation company with information regarding your outstanding payday loan debt. This information includes lender names, account numbers, amounts, etc. You will, of course, be asked to sign certain contracts for the services provided by the payday loan consolidation company, but in most cases you will not be required to pay a fee until the consolidation has been completed.
Step #2 – A savings account is set up in your name that will be for deposits only. Each month you will deposit a certain agreed upon amount into the savings account. The amount you deposit will be based on your income and expenses. It will be an amount you can afford. If you have an issue with the amount then you should feel free to discuss your anxieties with your payday loan company.
Step #3 – Once the savings account has reached a certain balance the company you have hired will begin negotiating with your payday loan lenders. Negotiators will use the amount of money you have placed in the savings account as a sort of good faith gesture to prove to the payday loan lenders that you will be able to pay them back. Payday loan consolidation companies typically work with the same lenders so they can effectively estimate how much they will be able to reduce your debt. With this knowledge they can also estimate how much you would owe each month, and ultimately how long it will take.
Step #4 – The consolidation company you hired will then begin calculating the payment you will make that includes all of your new balances consolidated. Again, you will be involved in the process of creating this amount and it will not be an amount you cannot afford.
Step #5 – You will make one payment each month to your payday loan debt consolidation company of a specified amount and they will be responsible for correctly disbursing it to all of your payday loan lenders. At the end of your plan your payday loans will finally be gone for good.
So, does pay day loan consolidation sound like a process that could work for you? Are you not sure what your next step should be? We can help with that. Fill out our simple, no obligation, online application or call our toll free number today so that we can connect you with a payday loan consolidation company in your area. Before you know it you could be on your way to finally getting rid of the payday loans that have been a constant struggle.