Payday loan consolidation is always a better option than declaring bankruptcy. Consolidation does require you to pay back a significant portion of the borrowed funds, though often a lower amount due to the negotiations. The primary benefit to this being all of the involved accounts will be either paid or settled.

With a bankruptcy, you may not have to pay it back in the same manner, but there are other downsides to the filing. While the debts will be officially discharged in the eyes of the courts, the bankruptcy determination will stain your credit for a minimum of 7 years.

The constant harassment by phone of lenders is one of the most infuriating and frustrating parts of bearing debt from short-term loans. While the reasoning behind them is understandable, the endless calls can be overwhelming and even frightening for those dreading them.

Once you are enrolled in our payday loan consolidation program, we will send cease and desist letters to all current lenders, so your phone burden will be relieved almost instantly. We will become your primary contact for all your debt-related communication.

Whether or not consolidating your debt will impact the amount of taxes you owe depends on what plan you use. With a debt consolidation loan, most of your unsecured debts are rolled into one loan, potentially leaving you with a lower monthly payment and aggregate interest rate, although you will still be paying off and honoring all of your obligations. Because of this, there is no tax liability.

With debt settlement, our team negotiates with your lenders to lower your rates. When these rates are lowered, the amount of debt forgiveness would be reported to the Internal Revenue Service (IRS). The amount that is reported is how much will be expected of you to pay taxes on as if it were income. Keep in mind that you are obligated to report all unsecured debt forgiveness to the IRS, even if your lender says they will handle it.

Will Debt Consolidation Lower My Monthly Payments?

One of the benefits of working with National Payday Loan Relief is that none of our programs require you to close your checking account. Payday loans can become problematic when they debit your payment as agreed upon when you signed up for the loan.

Sometimes the money is withdrawn earlier than expected, which can lead to problems. When we step in, the ACH withdrawal privileges are revoked, meaning the lenders will no longer be able to draw funds from your accounts.

While it is easy to confuse the two, a debt consolidation loan and debt consolidation are different things. Debt consolidation means all of the money owed is gathered together leaving you with one large loan, giving you a single monthly payment. This makes meeting the requirements easier.

A debt consolidation loan, however, just means you are taking your unsecured debts and offering some sort of estate, such as a home, to secure it. Debt consolidation loans are definitely riskier, as your business or home is being put on the line.

Debt consolidation is generally available for unsecured debt and car loans. It is very rare that consumers get into debt trouble due to a mortgage, but there are other types of unsecured debt that can negatively impact your credit. The types of debts our debt relief programs may be able to help you with are:

• Credit cards
• Payday loans
• Unsecured personal loans (including student debt)

Our goal at National Payday Loan Relief is to come up with a customized plan to consolidate your payday loans. Our plans vary depending on your specific circumstances, but they are generally for 6, 12, or 18 months.

Some of our clients have thousands of dollars in debt, while others only have about $600 they need to pay. No matter how many loans you have, we’ll negotiate with your lenders, leaving you with one single payment.

When you decide to put your trust in a debt consolidation company, it can be stressful to not have confirmation that your lenders are being paid off. Luckily, there are a number of ways modern consolidation companies provide for you to keep an eye on the activity on your accounts.

Most companies have an online portal where consumers can view a digital account summary. Alternatively, you can always contact the company if you don’t want to use the online options.

When the amount of debt you have becomes overwhelming, consolidating your loans can give you some much-needed relief. Consolidating your debts is helpful because you get a lower rate, less interest, and you’re no longer stuck dealing with multiple payments each month.

Our team contacts your lenders so we can negotiate a lower amount. After your loan debt is consolidated, you’ll have one manageable monthly payment.

Enrolling in our debt relief program is simple, fast, and free! Simply complete our online form or call for a free consultation. Once we have received the details of your existing loans and current financial situation, our team can get a plan together to help you reach your goals of financial recovery.

It’s no secret that unsecured debts related to payday loans and credit cards can negatively affect your credit score. To rectify this, a debt consolidation loan can help.

Debt consolidation can improve your credit in the long run, but initially, you may see a negative impact on your score because this additional loan is another form of debt.

Your credit will recover shortly, because this loan is used to clear your debts, fulfilling those obligations. As you make your loan payments on time, your score will continue to improve due to your responsible activity.

When you find yourself in deeper debt than you can handle, it’s time to reach out for help. Our debt relief services are here to ease your financial troubles a bit, so you can get on with your life.

Our main goal when negotiating with your creditors is to reduce your debt as much as possible, focusing on finding a manageable number for you. Using our debt relief services, you can expect to have 25% to 50% less debt by the time negotiations are completed.