Americans in Payday loan debt – When waking up in the morning you just never know what life is going to throw at you. Unexpected situations and emergencies happen every single day. Perhaps a flat tire. Perhaps a medical bill needs to paid. Or perhaps you get behind on bills due to losing your job.
To be honest, payday loan companies flourish because of these situations. They understand that everyday people will always have unexpected challenges. After all if it wasn’t for emergencies and people getting behind on their bills this industry would hardly be successful at all.
One in 3 college-aged Americans consider taking out payday loans. This is understandable, many young people who are college students are away from home for the first time. And the responsibility of that can be shocking. Not only that but they learning for the first time what it means to manage their money.
Situations such as having to pay more for books and tuition can be devastating. Or perhaps a roommate doesn’t come through on the rent. Another interesting scenario could be needing to bail out friends from jail. All of these cases could make payday loans look appealing.
Why Payday Loans?
Payday loans are common. It is a quick and easy way to get needed cash. What makes payday loans so alluring is that a credit check is not required. For consumers with not so great credit this is pretty good news. Also, excellent news for college students who have no credit.
What is required to obtain a payday loan is a photo id, an open checking account
and a job or source of income. Most adults have these things, so it makes applying that much easier. The payday loan agency will make copies of the applicant’s identification. Along with making a few calls to verify employment. Once these things run smoothly then the applicant is on their way.
It sounds easy enough and perhaps innocent enough, but its not. Due to the predatory nature of payday loans, the lives of many people have been ruined. It has gotten so bad, that states had to implement regulations in order to protect their residents. Payday loan debt is now being carefully monitored by many states.
What Can be so Awful About Payday Loans?
There are a number of things that make payday loans so unappealing. Here are a list of some of them below:
- Charging up to 400% on interest
- Charging excess fees
- Harassing calls
Payday loans charge phenomenal interest fees. These fees can be as high as 400%. The typical loan interest fee is around 5% -20%. So you can calculate the enormous difference. Also, when the borrower gets behind the payday lender will continuously require the borrower to make the weekly high interest fees.
Which could amount up to double or triple the amount that was borrowed. Putting the consumer in a terrible bind. If the consumer refuses to pay the high weekly interest fee, the payday loan agency will threaten to cash the check against the borrower’s bank account. Which will worsen the financial situation of the consumer even more. Payday loan debt has creeped into the lives of many Americans and have caused quite a bit of distress to many people.
Many states now require payday loan companies to suggest trusted financial consultants to all borrowers that have fallen behind on their payments. Payday loan debt can be curved in many cases with a little consultation. The consultant will look at the payday loan debt of the borrower and attempt to find a solution.
Payday loan debt relief can begin by participating in a payday loan debt consolidation program. This type of program is there to help with payday loan debt. This particular kind of payday loan debt company works with borrowers to gather all payday loans and to consolidate them. Once they are consolidated the borrower will then began to make one payment per month.
Consolidation Makes Life Easier
Payday loan debt can be made significantly better to work with if the borrower decides to join a payday loan debt consolidation program. In this program the payments are made smaller and the high interests is also eliminated. Also the harassing calls from the payday loan agency will stop.
Payday loan debt can be eliminated also, through payday loan debt settlement. This type of payday loan debt company will help pay off all of your payday loans. And in return the borrower will then began to make payments with to that company. This program provides help with payday loan debt by simplifying things a great deal.
Payday loan debt can be reduced in much more manageable way by signing up for a payday loan debt settlement agreement. The borrower will need to have some type of collateral, however to be approved. But once approved all payday loans will be taken care of. The lender and borrower both will decide on a low reasonable monthly payment. Also, they decide on the length of the term, whether the agreement will last for 12 months or 16 months.
By participating in a payday loan debt settlement, the borrower will be able to find some relief from the turbulence of payday loan debt. Initially, when speaking with a debt consultant the consumer will be given various options. From these choices the consumer should be able to make up their minds as to what steps to take.
Payday loan debt can distract you from your everyday decision making. It can leave you distraught and overwhelmed. Fortunately, by choosing from various services, those days can end fairly quickly. So, make the right choice today to end the roller coaster of high interest rates and fees. Make the right decision for you and your family to start enjoying life again.