Payday loans are easy to get these days and unfortunately so is payday loan debt. Overspending and unexpected emergencies often drive people to these short term, high interest loans, which can prove to be trouble if not managed properly. Nevertheless, they do present an opportunity for quick cash which is hard to come by in today’s tough economy.

If you’re having trouble with numerous loans, payday loan consolidation can be a helpful alternative. Keep in mind it should only be an option if you cannot afford to pay off your balances in full and find yourself drowning in renewal fees. If you can afford to cut some unnecessary expenses and pay them in full than you should do so. If you find you are insolvent and your family’s well-being is at stake, than you may want to consider negotiating with your creditors or hiring someone to do it for you.

First things first, what does it mean to consolidate your payday loans? The simple definition would be to combine all of your debts together, having just one monthly payment. Basically there are different ways to accomplish this and it will be helpful to look at all 3 options separately. Each consolidation strategy makes an attempt at lowering your monthly outlay and paying off your principle instead of just interest or renewal fees.

First, you can decide to hire a payday loan consolidation company to do it for you. If you decide to do this make sure you do your homework. There are different types of companies and programs out there, many of which offer a free consultation to explain what they do, how they do it and how you can track the progress of your program. Take advantage of this, listen carefully and be sure to check the companies track record.

Basically the agency works on your behalf, contacts your lenders and attempts to settle or resolve your debt. In turn, you make monthly payments which are put towards payment plans or accumulate until a settlement can be reached. Reputable companies often know which strategy is best for you based on their experiences with that creditor and your individual circumstances. The main advantage to this is that the work is done for you, all you need to do is make sure you make timely payments and track your progress. Also, these companies often deal with many of the creditor calls which can relieve a tremendous burden.

Secondly, you can simply get a lower interest loan. This is when a bank or finance company (or even a family member if you’re lucky) loans you the money at a fixed interest rate for a set monthly payment and pays off your lenders in full. Unfortunately, these loans carry high credit standards and approval guidelines, so they may not be an option for someone in financial hardship.

If you’re like thousands of other Americans, you may find yourself in the unfortunate predicament of having taken out multiple high interest payday loans while getting hit with penalties and other fees for not making all your payments on time. You may have also been forced to take out even more loans to pay off existing ones but still can’t seem to get out of the trap you currently in. If this describes your current situation, you should consider consolidating your payday loans. In this article, we’ll talk about what payday consolidation is and how to go about it.

Payday loan consolidation simply offers a way by which all your existing loans are combined into a new loan under new terms. Instead of making multiple payments to all your different lenders, you make a single, consolidated payment towards the new loan each month at a much reduced interest rate. Your monthly payments are typically going to be much smaller and more manageable. You can choose to consolidate on your own or, if your situation is more complicated, through a specialized debt consolidation company. Regardless of how you consolidate, you need to decide whether you are going to consolidate your debt using a secured loan (where you have to put up something as collateral like your home) or an unsecured loan. Secured loans have the advantage of offering you a much reduced interest rate, but if you have good credit, you could get a decent rate even for an unsecured loan.

If you choose to work through a debt consolidation company, the company will take on the task of dealing with all your existing creditors and come up with a new consolidated loan for you. Ideally, you’ll then be completely shielded from collection calls and won’t have to worry about your current creditors at all since the debt consolidation company will do all that for you. They’ll collect consolidated payments from you each month and disburse them to your creditors. There are, however, certain things you need to be aware of regarding such companies.

First of all, you need to do all your due diligence on the debt consolidation company you sign on with. For starters, make sure they are legitimate and have your best interests at stake. Some are either scams or really in it just to make more money for themselves and don’t really care about your financial future. To weed out such companies, check to make sure that the firm you intend to business with is accredited by the National Foundation of Credit Counselling (NFCC). You should also contact the Better Business Bureau (BBB) to make sure that there aren’t a bunch of complaints about them in the past. It is also a good idea to make sure that the company is financially solvent and has insurance for funds they receive from clients. That way you know that payments you make are well protected.

Next, you need to carefully look at the plan that’s presented to you. Make sure it is customized to fit your needs and you understand all of its terms and conditions and the fees you will be charged each month. Ask lots of questions if things are unclear and sign a contract only if the terms are reasonable and you can afford the payments each month.

If you’re caught in a web of high interest payday loans and all seems lost, you need to take action today. Don’t let things get from bad to worse or take out even more payday loans to pay off existing ones. We hope that after reading our article you will consider consolidation as an option and work towards paying off those nasty payday loans as soon as possible and be well on your way to being debt free. Cheers to a strong and successful financial future

When you find yourself in over your head with too many debts, there is no need to despair. There is a way to payday loans consolidation help and rise above the situation.

What Getting A Payday Cash Loan Means?

Payday loans are easy to take. All you need to do is to fill out an online form and prove that you have a steady employment. You have instant cash transferred to your account within a matter of two to three hours.

With no strings attached, this becomes a very easy solution when you urgently need instant hard cash and you cannot wait till your next paycheck. This is well and good as long as you have the capacity to pay off the loan as it has a high interest rate due to the very nature of the payment. At the end of the month, you do not have enough cash left over from your normal monthly expenditures to fulfill your debt. You take out another loan to pay the debt, and the cycle continues till you realize that your debts have mounted.

Then comes the harassing phone calls and scary debt collection agents who do not care about if you are in a position to repay your loans.

Before you reach this stage, you need to take assistance of the payday loans consolidation help agency. You can get rid of multiple payday loan debts. You will only have one obligation and that too at a considerably lower interest rate than the cash loan.

What Debt Consolidation Agencies Can Do?

These agencies can payday loans consolidation help by first assigning a credit counselor who can analyze the situation quickly and efficiently. He will go through all the circumstances. He will make you understand the impact of getting too many loans without having enough means to pay them back. He will then help in consolidating them and the agency will pay them off.

Once all your debts are repaid, you are only indebted to this one agency. They will provide you with a much lower interest rate and give you enough time to repay this amount. You can go for either an unsecured debt consolidation or a secured debt consolidation.

In an unsecured debt consolidation, there is no collateral attached. Therefore, the interest rate is slightly higher but well below what the payday loan creditors would demand.

In a secured loan debt consolidation, you place collateral such as your house against the loan. The interest rate here comes down because there is reduced risk when you are putting your house on the line. Of course, if you do not pay your debt, you will be losing your house.

Conclusion

Taking too many loans will disrupt your future plans and you will eventually be filing for bankruptcy if you do not act quickly. Agencies that payday loans consolidation help genuinely want to assist and payoff your loans. They will support and counsel you to make the right choices and get the financial reins of your life back into your hands.

A payday loan can be a real life-saver when your monthly budget is hit by an uninformed roof leak or a medical emergency. There’s ready cash available to tide you over the immediate financial crisis. It is a high interest loan, but well, so long as things are taken care of till your next pay check arrives!

The deadline for repayment is generally when your next salary is due. If you are unable to pay it, it is carried forward.

The problem with payday loans is that it can be a vicious cycle. Before you realize you have signed up for multiple loans, making it very difficult for you to keep up with timely payments and fees. The ease with which you can obtain one is partly to blame.

How do you pay off these loans?

Payday loan consolidation is the solution for individuals who have accumulated huge debts. However, you need to first understand how it works.

The counselor will first evaluate your financial situation. This includes validating loans and ensuring which ones are still active. The company pays off your outstanding debts; so all your loans are rolled into one against new terms. You are then only liable to one credit agency.

A high interest rate is a distinctive feature of this type of loan. A company that works towards consolidation will first look for ways to reduce the rate of interest against which the amount that was loaned to you; thus, your loan is easier to pay back. It can also help you forgo additional charges and fees. To add, they give you sufficient time to payback your loan. So, at a lower rate and more time to pay up, your monthly installments are going to be smaller.

In payday loan consolidation too, you have two options:

· Secured loan consolidation includes securing loans against some value property such as your house or car etc. The rate of interest is low; however, in event of failure to repay, you will lose the property held as a collateral security.

· Unsecured loan consolidation which is offered without requiring a collateral security. The rate of interest is slightly higher than the first option but lower than that charged by payday loan lenders. It is a great option for one with a good credit score.

You can consolidate the loans yourself or get payday loan debt help from companies that offer such services. If you choose the latter, they will handle everything for you right from handling communication with your lenders to paying off your loans.

The bottom line is a payday loan consolidation company does not write off your debts. They work with you and your lender to create a payment plan that is affordable.

Now if you want to get the best settlement soon, you need to choose your payday loan consolidation company with care. You need to make sure the company is registered. This step helps ensure the financial institution is authentic. Be clear about the fees you pay towards the settlement. Payday loan consolidation should be based on your financial situation. The company should not work with a one-size fits all approach. If they force you to accept the terms and conditions in place, avoid the company and look for another. If the company is trying to sell you stuff other than payday loan consolidation services, it is a red flag.

So, if you’ve mounted debts and are unable to repay the loans, don’t get bogged down by the phone calls and repayment agents. Schedule a free counseling session with a payday loan consolidation company and end your stress.

If you are one of the millions of Americans drowning in payday loan debt, chances are you have probably already considered seeking help from a consolidation company. You have done all the work you had to do to gain the upper hand against your payday lenders: researched online for a good and reliable company, filled out all the paperwork, and finally, you are ready to get your finances back in control. Then suddenly, your lenders tell you something that stops you in your tracks. One simple statement that can make anyone in debt feel completely hopeless: “We do NOT work with consolidation companies.”

Is this true? If payday lenders do not work with consolidation companies, then why do they even exist? Here are the three main reasons why your lenders will eventually work with your consolidation company.

1. Before you enroll in a debt help program, the first thing that payday loan consolidation companies will advise you to do is to close the bank account that your lenders have access to. Although consolidation companies send legal documents to your payday lenders to revoke their authorization to automatically debit your bank account, it is necessary that you close your bank account to make sure that there are no unauthorized charges coming out of your account.

2. Your payday loan consolidation company will also send legal documents to your payday lenders to cease and desist further communications with you. According to the Federal Trade Commission, lenders have to follow certain rules and regulations when collecting debt. If your payday lenders do not follow these rules and continue to make harassing phone calls, your lenders can be fined $1,000 per EACH phone call that they make. Because most loans are small amounts (between $200-$1,000), calling you becomes a risk that is just not worth taking.

3. Many are afraid that they will get sued if they do not pay off payday loans. Majority of borrowers do not know that most payday lenders (especially Internet-based) are not licensed to lend money to people residing in the United States. This means payday lenders do not have the ability to take non-paying customers to small claims court for a payday loan. Payday lenders often use this tactic to scare borrowers into paying them, and is effective because most customers are not well-informed about what lenders can and cannot do.

Now, sit back and think of this for a moment: Your payday lenders cannot debit your bank account for payment, cannot call you to ask for money, and cannot sue you for the unpaid loan. How else will they get paid? Who else can they turn to? There is only one answer: payday loan consolidation companies.

So why would your payday lenders deny working with consolidation companies in the first place? It’s simple. People who sign up with consolidation companies obviously have several payday loans. As a matter of fact, people drowning in payday loans usually have between two to twenty payday loans. Usually, consolidation companies work from one lender to another, which means that if you are a payday lender, you would be unsure as to when you would get paid. Payday lenders are aware of this and know that chances are, they could get paid faster if there is no third-party involved. For this reason, they claim that they do not work with payday loan consolidation companies, even though they eventually will.

Do not let your payday lenders intimidate you until you know all the facts. If you have tried everything you could to get out of payday loan debt yourself but have failed, maybe it is time to seek professional assistance. After all, who wouldn’t benefit from a little help once in a while?