Loan Consolidation a Great Method for Loan Relief
Consolidate Payday Loan Debt – A unexpected need for quick cash can occur at any moment. Perhaps a bill is due, that you were not aware of or maybe your car needs a needs a new battery. Taking out a small bank loan is optional, however most banks will run a credit check. If your score is too low, you will not qualify. There are some banks that will bypass the low credit score, with the exception of a co-signer or collateral.
Putting up a car or a home as collateral may not be something most borrowers are able to do. Most borrowers find themselves taking out loans from payday loan offices for this very reason. Payday loans do not check credit scores, nor does the borrower has to have collateral.
The Convenience of Loan Consolidation
Payday loan consolidation has become a lifesaver for quite few people. It’s a reasonable option that allow families to see their way out of a long dark tunnel. It collects each and every outstanding payday loan and combines them into one. This method makes it much easier for the borrower to keep up with what he/she owes. When doing this you are able to take control of your life again.
There are many convenience points regarding loan consolidation. A few of these points are listed below:
- the mounting interest comes to a halt
- no more extension fees
- less confusion
- eliminates harassing calls
When you take out a payday loan it is generally expected to be paid back with the next two weeks. If you can not gather all of the funds to pay it off then you are allowed to pay only the interest. The interest can be as high as 400%. Yes, payday loans are considerably high. In fact a good number borrowers end up with payday loan debt, specifically due to the high interest.
Payday offices in the past have gladly allowed borrowers to pay only the interest on the loan for as long as they would like. It was normal for there to be numerous cases of borrowers who would wind up paying 2, 3 or 4 times the amount of the loan only in interest fees! Every two weeks the borrower would come to the specified location and pay loyally. Also, if a borrower needed to ask for a loan extension this would result in a loan extension fee. Each time the loan is extended the payday office would apply an additional fee. This caught the attention of state legislators who considered this to be predatory behavior.
There are now state regulations setup to protect the consumer. Now in many states the borrower is referred to a financial specialists when it looks like the borrower is in trouble. The specialist has to be a trained, experienced individual. If the specialist is not on location, that is fine the payday can simply provide the borrower his/her information. The payday loan office must provide the borrower time to have the appropriate counseling.
Payday Loan Relief
Once you have decided to accept consolidation as a way to get out of payday loan debt the stress is significantly reduced. The pressure of knowing the interest and extension fees are accumulating by the week is now relieved. The mounting hill of debt has now come to a halt. Consolidate payday loan debt is easier to maintain because there’s only one bill to pay. There is not 3 or 4 banks that you have to run to in order to stay afloat. Consolidate payday loan debt will also require a payment once a month, instead of once a week. By managing the debt situation once month, it leaves the borrower time to spend on other things.
Now that the payday loans are all combined into one bill, there is much less confusion. When you receive your bi-weekly of monthly employee compensation you know that there is only one bill that needs to be paid. Also, one main thing about consolidated loans are that once the you sign up for them, the phone calls stop. Most payday loan borrowers when they get behind on their payments will began to receive nonstop reminder calls. Even if the borrower has spoken to the payday loan office, the reminder calls will still continue. Joining a consolidation loan program will cease all calls immediately.
These days there are laws in place to protect the consumer from the times in which these types of calls are allows. Calls can not come in before 8 am, or after 9 pm Monday – Friday. On Saturdays collection calls are permitted 1 – 5 pm and on Sundays they are not allowed.
Consolidate your Loans
Consolidate payday loans are setup to relieve as much as possible. A reasonable payment that you can afford, without getting behind on other bills is setup. The financial consolidation office will take a look at your bills. For example the amount of rent, car payments, student loans etc will be looked at. Once all of this is calculated the financial agent will then come up with an agreed monthly amount. Consolidate payday loans are designed to allow you to get back to normal with your life.
The financial agent and the borrower will together come with a date, in which the loan should be completely paid off. The loan may extend to 6 months or 2 years, it will be up to the borrower. Typically, the longer the loan period the smaller the payment amount. The loan period may be extended if payments are missed. The best way to avoid an extended loan period is to make certain that all payments are made on time. If these payments are consistently and on time the payment end date of the loan should fall right in place.
If making worrisome payday loan situation easier, than why not do it? Take full advantage of all the services that National Payday Loan Relief provides !