There is a process called payday loan debt consolidation that many people have used to finally get out from under the weight of thousands of dollars in payday loans. Although payday loans can be extremely helpful in a situation where you need money fast, if they are not paid back in a timely manner the interest and penalties can grow quickly. The good news is that there is an organized way to get rid of the debt: consolidation.
Using a payday loan debt consolidation company you will be able to reduce the total balance that you owe, and then combine all of your payments into a single one each month. This will take away the stress of several lenders calling you, sending you letters, or email you every day. The consolidation company will take responsibility of disbursing the correct amount of funds to your payday loan lenders until your debt is gone. Here’s a little more information about how the process works:
At the beginning of the process your consolidation company will open up a savings account for you to deposit a certain amount in each month. This amount will be based on your current income and expenses and will not be more than you can feasibly afford. Once this savings account has reached a certain amount the negotiators can begin communications with all of your lenders to request a reduction in balances and monthly payments. If your negotiators have worked with your lenders previously there is a good chance they will be able to reduce your debt quite a bit.
Once the negotiator seals the deal and your lender has agreed to a reduced amount you will be notified of what your new monthly payment will be and for how long. Finally you will be able to see a light at the end of the tunnel when it comes to your payday loans. When you make your final payment your payday loan lenders will mark your account as “settled” so that anyone who checks your credit report will not see that as an outstanding debt.
If you feel like you see a letter every day from a different payday loan lender and feel like you have more interest and penalties added to your balance every hour, then you may be able to benefit from a payday loan debt consolidation. The program will organize your payments, stop the interest and penalties, and give you a solid deadline when you know your debt will be gone for good. If this payday loan debt consolidation is something you are interested in please fill out our no obligation online form or call our toll free number to speak with a knowledgeable representative today.