Avoid The New Payday Loan – During President Obama’s times, the administration tried an amending payday loan debt rule to ensure any person with a loan could repay their loans. The rules helped, but they restricted the amount of credit that you could apply.
But with the Trump administration, the rules were blocked from being active. They are giving allowing borrowers to get as many loans as they want without any restriction. When there is no restriction, the borrowers tend to borrow more than they could repay, making you get into a debt trap. Before lending any loan, it is advisable to escape financial problems.
Below are some of the reason as to why you should avoid payday loan debt:
Due to the Covid-19 situation that affects people worldwide, many people have lost their income, making them have no option other than getting into payday loans. With payday loans, they are easily accessible but comes with a lot of challenges. Some of the reasons as to why you should escape payday loan debt rule are:
Lenders who offer payday loan debt consider the service as high risk because the loan has no security or proof that the borrower will repay the debt. That’s why during the Obama era, it was considered to be expensive and with a lot of additional documentation.
The payday loan debt can cause you many financial problems, one thing you should keep in mind the lenders are there for business not to protect the consumer. But in case you find yourself into this trap, a payday loan debt relief program to help you with your loan. Avoid payday loan debt and consider other kinds of loans.
Short period to repay the loans
Payday loan debt are easily accessible; you only need to have an id, proof of income, and a valid bank account you are good to go. But the problems come when repaying the loan. The lenders give a short period for payday loan debt settlement. The repayment period goes for around two weeks, which can be impossible with no source of income.
The loan can cause a lot of pressure, especially when you have just lost an income. In case you find yourself in this trap, consider having a payday loan debt consolidation.
Offers top-ups loans and loan renewing
Payday debt can be so good when it comes to giving additional money. The lender is not concerned if you can repay the loans or not; this can cause many financial problems. Other loans can make you have a circle of unpaid loans. If you already have a lousy debt, consider payday loan debt consolidation, where your loan converts into personal loans.
As you take the loans, payday loan debt should be avoided as much as possible. With a chain of non-pain debt, national payday loan relief can help your credit aid.
Services and interest rate
Compared to personal loans, which offers a 10% -30% interest rate depending on your type of loans. Payday has a higher percentage of 400% annually, making it far much high for ordinary citizens.
No flexible payment plans
Lenders can withdraw from your account directly.
What are the 2020 new rules that can affect payday loans?
During the Obama presidential rule, some rules could protect the consumer from harassment by the payday money lenders. But when Trump became the president, he amended the rules and came up with new regulations that favored the lenders. The latest standards have exposed the borrowers leaving them in a borrowing trap.
Some of the harsh rules include:
- The lender allowed to check if the borrower can repay their loans or not. Allowing the borrower to get any credit he/she wants, which exposes him/her into bad debt.
- The consumer financial protection bureau removed the underlined mandates. One of the orders was the ability to repay protection, which exposed the borrower to non-affordable rates with a very high interest of up to 400%.
How to avoid payday loan debts
Take a personal loan
Borrow money from friends and family
How you settle your current payday loans
Ask for an alternative loan.
Ask for extended payment.
File for bankruptcy
Have a consolidating plan
Payday loan debt consolidating plan is a way to ask for a relief where your loan restructured, and you can repay your loan in installments.
National Payday Loan Relief is one of the best institutions that offer the best payday loan consolidation plan nation-wide
You can quickly get money with payday loan debt, but it can lead you to a difficult financial situation. The money lenders want to have again on their side by oppressing you.
Especially when you have a reduction in your income or have no income source, a payday loan debt should not be in your to-do list; they will only work best with employed persons. There are their types of credit, such as personal loans that can work with your budget.
So get a free quote with National Payday Loan Relief today to start your debt free journey !