Payday Loan Consolidation: Get Payday Loan Debt Help Now!
Dedebt is a well-known and reputable company that provides debt consolidation and financial management services. The company focuses on helping people who are struggling with payday loans. Most borrowers are unable to repay their payday loan amounts on the due date, so they borrow to pay and take another payday loan. The interest rate keeps accumulating and by the time they realize, their debts are high. They get stuck in a debt cycle, which is almost impossible to break.
How can Dedebt Help me?
In such payday loan trap situations, Dedebt Help can help borrowers to break out of the debt cycle. They do this by stopping automatic bank monthly payments and helping you to restructure your payment schedule. They will help you to select a schedule that suits you. They will also negotiate with your lender to reduce your fees and overall debt.
How does payday loan consolidation work?
Debt consolidation creditors help you to bring together several high-interest rate loans and unsecured loans into one loan. The good thing is that you are likely to access the consolidation loan at a lower interest rate. This will reduce borrowers’ monthly interest charges, help you to save money, and paid off your debt settlement.
The process of consolidating borrowers payday loan is pretty simple. You need to apply for an online personal loan. When it gets approved, you use the funds to pay off your credits. Then you can focus on repaying your personal loan.
What information will I need to provide?
When applying for a personal loan, you will need to provide certain information. You will need to provide personal information such as name, contact number, and address. You will also be required to provide some financial services information. Some lenders will also ask for your pay stubs, tax returns, and utility bills.
How do I prepare for loan consolidation?
Before you decide to consolidate your debts with a personal loan, you need to review your personal finances. You should also develop a plan to help you stay on track. A plan that will help you to repay your monthly payments so that you can be consistent.
If you don’t do this, you may end up being worse off. In the sense that, if you don’t discipline yourself financially, you will incur more loans, you will also have a hard time paid off your personal loan and that will leave you in more debt. You may have to look at bad credit consolidation if you cannot qualify for a “normal loan”.
What are payday loans?
A payday loan is a short term loan that is often provided by an online lender or upfront store lender. This loan is usually due in 30 days or less, and the loan amount is up to $1000. Payday loans come with fees that you must pay along with the loan amount on the due date.
Most lenders take post-dated checks with the total loan amount and fees with the intention that if you don’t pay on time, they can request a direct debit from your bank account. Getting an online payday loan is simple and easy but once you get in, you may have a lot of problems getting out of the debt cycle.
The qualification requirements for getting a payday loan is easy. All you need is a checking account and proof that you are employed.
Why Are Payday Loans Bad?
Payday loans are usually expensive and if you don’t pay on the due date, you may be allowed to roll over the loan into a new loan. This attracts new fees, which means you will be required to pay more on the next due date. The fees are incredibly high. Some payday loan lenders can charge as high as 700% APR while regular banks charge up to 35% APR. This means you will be paying up to twenty times more than regular loans.
Many people know this, but when they are desperate for cash, they succumb to the pressure of taking out payday loans. Unfortunately, these loans easily get out of control because you will be paying way more than you actually received.
What are some consolidation benefits?
- Payday loan consolidation helps you to reduce the total amount you owe.
- It also helps the borrower to avoid bankruptcy.
- Consolidation puts a stop to automatic bank debits.
- Most people who consolidate their payday loans pay low monthly payments.
- You get the chance to improve your credit score.
The primary benefit of consolidating this type of loan is to help you manage your debt consolidation company.
What are other features of payday loan consolidation?
The fees on personal loans solution programs are usually lower than those on payday loans. You can pay up to 400% in interest rates for payday loans while the rate for personal loans ranges from 4% to 36%.
With personal loans, you can choose a payment plan that suits you. The loan will be spread for some months. On average, the loan term ranges from 12 to 84 months. The repayment terms for payday loans are usually 2 to 4 weeks.
The monthly payments are predictable
When you consolidate your debts, the monthly payment is spread over a period. The payments are fixed so you know exactly how much you will be paying at the end of the month.
Personal loan lenders care about your ability to pay the loan
The creditors that offers personal loans check to make sure that you can settle the loan before they grant you the loan. If they realize that you won’t be able to repay the loan, they won’t approve the loan.
You can’t renew the loan
With personal loans, whenever you finish the payday loan cycle, your account will be closed. If you need a new loan, you will need to apply for it. This is unlike payday loans where you can simply renew your loan.
What is the difference between debt consolidation and debt consolidation loan?
Debt consolidation loan involves converting your unsecured loans into a secured one. You will need to provide some form of security. It could be your home. The problem with this is that you risk losing your home, which will make you worse off.
Debt consolidation, on the other hand, involves putting several loans together into a single loan. This will reduce your interest rate.
How does payday loan consolidation affect my credit?
This process does not affect your credit score. If you manage to complete your payments through consolidation, it will improve your credit score in the long run.
How can I be sure the right people are being paid?
To be sure that they are making payments, always deal with reliable consolidation companies. Check for reviews before dealing with any company.
Do I need to pay tax on my debt consolidation program savings?
If the amount exceeds $600, you will be required to pay tax on it. The IRS considers any amount above $600 as salary.
Can my lenders sue me?
Yes, they can but they rarely do. When they are sure that you consolidated to able to make payments, they won’t. Lawsuits cost a lot of money, and they won’t take that step when they know they will get their money.
Which is better – Debt consolidation or bankruptcy?
Debt consolidation is a better option because it helps you to reduce the total amount you owe, pay off your debts, and improve your credit score. Bankruptcy, on the other hand, is an extreme method of getting rid of your debts. The record will stay on your credit report for 7 to 10 years. You may need to live on a tight budget, and it will also be difficult to get a loan. We have put together the best consolidation loans in 2020 if you would like to see.
What happens if I cannot meet the payment plan?
If you cannot meet the payment plan, you can cancel your plan and go back to paying your lenders.
Can a lender refuse to work with a debt consolidation company?
Yes, it is possible. The lender may prefer working with the borrower. But this is rare since lenders are always looking for ways to get their money back.
Can debt consolidation stop wage garnishment?
Payday loan consolidation VS debt settlement
Settlement involves getting into an agreement with the lender so that you can pay less than you actually owe. In most cases, creditors agree to settlement when they realize that the borrower is in a financial crisis and may not be able to repay the loan. They do this to get back a large portion of the loan amount.
Should You Get Payday Loan Consolidation
Payday loans are usually expensive because the fees are high. They don’t require favorable terms service and if consumers don’t take care, you will be trapped in a vicious debt cycle where you repay your loan for a very long period.
Personal loans are better than payday loans in several aspects. Personal loans usually have lower interest rates balace service and they also have better terms. At least, you will know the total amount you will pay at the end of each month.
Payday loan relief is easy to access especially if consumers need cash urgently. But, if you don’t take care, you will get stuck in a debt cycle. The consumer will end up paying more fees as well. With most people, they end up taking another loan after repaying the previous one because the cash they have left will not sustain them for the month. They continue this for months until they are finally able to squeeze some money to completely pay off the debt.
If the consumer gets stuck in a payday debt cycle, you can use a personal loan to combine the balance of your debt. The consolidate payday will help you to break free from the cycle. Let’s see how this works. We will also talk about the benefits of consolidating your debts with a personal loan.
Other Debt Relief Options
If your struggling with your payday loan debts and you cannot get a personal loan, try these alternatives.
Ask for a payment extension
Some payday lenders can increase your payment plan so that you can pay the loan in installments. This option usually comes with a fee.
Work with a credit counselor
Credit counseling will help you to evaluate your financial situation and help you to improve. Apart from developing a strategy to pay the debt, they will also help you to stay out of debt by helping you with budgeting.
Talk to a legal attorney
Knowing your rights as a borrower can help you to make the best decision on your debts. You may qualify for a free legal aid if you have a low income.
Ensure that consolidating your debts can help you to save money before you opt for it.
You can also check out consolidation loans bank of america and national debt relief review.