When financial crisis strikes having a payday loan debt can easily cause problems to you. Your loans can add up and it could take a large chunk of your paycheck. This will affect your financial position. It is imperative that you look for payday loan consolidation company that will help you settle all outstanding loans so that you deal with only one loan. The firm will help you manage your negotiations and payments with your lender. Payday loan consolidation option is a solution for a person with numerous debts and is looking to accumulate them and pay it as one.
Why You Should Consolidate Your Loans
Ø You want to get rid of payday cycle
Ø You want to repay one loan at a time
Ø You do not have to pay advance fees
Ø You avoid high interest rates
Ø Less collection calls from various lenders
Ø Peace of mind
Principle of Payday Consolidation Loans
If you are having problems dealing with several loans then it is time to consolidate your loans. However, before you consider the process, it is essential that you understand how to consolidate payday loans. Payday loan consolidation company will work with your lender to lower the interest rates and you will avoid extra charges by repaying only one loan. Your consolidating company will offer you guidance and counseling on what you are supposed to do and get the best repayment plan.
How Much Will You Pay Every Month?
The amount of monthly payment that you will make will be based on the following:
- Outstanding loans that you have.
- The amount that your current income can afford.
- The interest that your lenders are willing to reduce on the loan.
You can merge all your loans into one and reduce the number of bills that you are supposed to pay therefore making it easy to monitor your repayment process. When you consolidate your loans there is a high possibility that you will reduce the principal sum that you owe the insurance companies. However, you should know that it would remove portion of the fees associated with your loan and streamline the payment process. before you opt to choose a consolidation company or lender, you should evaluate your current debt situation and choose a consolidator that works for you. The following are steps to consolidate loans:
1. Validate your debts
The first and important step is to confirm all the loans that you currently have and ensure that they are all active. Once you contact your lenders and know the loans that are currently active, you will be in a position to find the right avenue to deal with your loans. Your credit suffers from lack of payments or settling current loans. It is recommended that you look for a solution to your debt problem.
2. Know payday lending laws in your state
Check payday lending laws in your state and know the way of consolidation your loans. Payday loans are subject to laws and regulations in different states of America. Some states have limits or caps for the loan and there is a certain interest that you cannot repay a loan with or there’s a limit to the amount of loan that you can borrow. Moreover, many states have made it illegal for payday lenders to extend a second loan unless you have repaid your first loan. if you owe several lenders, you should put into consideration state laws.
3. Notify your lender
Once you have validated all your debts and you are sure that they are all legal, you move to the next step of notifying your lender on the intent to consolidate the loans. This way your lender will evaluate your entire loan and determine the right amount of loan that you are supposed to pay. Payday loan consolidation works by paying off all existing debts with a new loan. This is a loan given by your lender to clear all the existing debts you have. You may lose track when you have so many small loans, which makes repayment process a challenge. It is simpler to deal with one loan unlike several small loans with a high interest.
4. Look for a reputable lender
Once you have notified your lender, the next step is to find a consolidation company or another lender who will fund your loan request. We connect you to hundreds of lenders in our network and they will fund your loan. You can simply fill the loan request form available on our website and we will link you to a lender who will fund your loan. The integral aspect of finding a lender who will deal with your entire loan is that you will have a peace of mind by dealing with only one loan.
We recommend responsible lending practices and you should not put yourself into a debt cycle causing more problems than you expected. If you are consolidating your many loans without having a plan to pay off the debt then you are just shifting one problem for a bigger one. You should find a long-term financial solution to your financial crisis. Once you have a plan we will help you consolidate all your debts and connect you with lenders who will fund your loan request.
Payday loan consolidation loan will come in handy if you do not have the cash to deal with urgent debts to pay. It saves you extra interest, other charges associated with the loan, and you can repay the loan on time. the payday loan is safer because of their unsecured nature and they do not require collateral so you do not risk losing properties. Small loans tend to attract high interest rates, you may end up paying more in interest, and other forms of charges associated with the loan. Scheduling of payments will be easy because you will have a few bills to pay. It is important that you look at the annual percentage rate to determine if the loan interest charged is right for you or not.