Helping to Pay off Payday Loans
If you are unable to repay your payday loan, you can roll it over or extend the term. But for this, the lenders will charge you high additional fees. You may also incur bank fees for bounced checks. So, its better to pay off your payday loan (PDL) debt as soon as possible. You can obtain a debt consolidation loan to clear your all your outstanding PDL debts. However, if you’re unable to obtain this loan and require help with debt problems, you can consider enrolling in a consolidation program offered by the various debt relief companies.
How can a consolidation program help you get out of PDL debt?
When you’re in PDL debt and seek help from a relief company, a certified counselor of the company will assess your credit needs and accordingly will assist you to determine your financial goals. The company will offer you a debt consolidation program and help you replace all your bills with a single monthly payment. Some of the ways this program can provide help with debt problems are:
• Avoid collection calls: A representative of the debt relief company will communicate with the PDL companies on your behalf and so they may stop harassing you with collection calls.
• Lower interest rate: The representative will negotiate with all your PDL lenders to lower the rate of interest on your payday loans. He will also negotiate to waive late fees and other charges.
• New repayment plan: The relief company will prepare a personalized repayment plan for you based on the debt payment that you can afford and get it approved from all the PDL companies.
• Reduced monthly payment: Instead of making separate payments to the payday loan companies, you have to make a single reduced monthly payment to the relief company. This company will distribute the payment among all your lenders.
• Pay off debt: By enrolling in a consolidation program, you can get rid of all your payday loan debts effectively with a short period of time.
It is true that payday loans help you cover your short-term expenses and are relatively easy to obtain, but the rate of interest on these loan are very high. The interest rates generally range from 300% to 900% and can be even higher in some cases. So, when you are unable to repay the payday loans on time and need help with debt problems, you must not hesitate contacting a relief company.