In a situation where it is hard to settle your payday loans, most professionals recommend that you try one or two of these methods. First, using another source of income, you could opt to consolidate your payday loans. The second option is by enrolling in a loan consolidation program.
You must get enough information regarding your legal rights when it comes to this kind of payday loan and what can be done by the lenders when issuing and collecting these types of loans that are short-term.
For people trapped in payday loans, one of the issues they face is the shame and embarrassment of their finances spiraling out of control. However, this problem could be solved by highly trained and skilled financial experts who advise on how to avoid this kind of situation. Our financial experts at Encompass Recovery Group are willing to guide you through until your payday loans are fully settled.
Using another source of finance to consolidate your payday loans
The first choice is to secure a different loan type for you to consolidate your payday loans or salary advance. Securing a personal loan with a zero or a low interest rate is what this option entails. However, most of the borrowers cannot be able to secure this kind of loan due to negative credit scores. For those who are lucky to get it, it works the same way as a standard debt consolidation loan.
It is required that you get a loan with lower interest rates from a different source. This will ensure that you can pay off the various payday loans that you have at a lower interest rate. After paying off your credit card debt, it is crucial to focus on paying back your new consolidation loan faster, possibly via monthly installments.
If you qualify for a zero or a lower interest rate loan, this method is ideal for you. However, you should be in a position to afford the monthly repayments for the consolidation loan.
Enroll In a Payday Loan Consolidation Program
This option of avoiding payday loans and your finances from spiraling out of control operates the same way as the credit card debt consolidation program. Under this program, a loan consolidation company represents you to your lenders. The main focus is to negotiate with the lenders to lower your interest rates and waiver any fees charged on your recent payday loans.
A free preliminary consultation is provided by most credit card debt consolidation companies. This ensures that you save on money as your payments are made affordable.
Suppose you have been penalized for the late payment of your loans. In that case, the consolidation company will negotiate on your behalf to have all the extra charges and fees reduced or eliminated by your lenders.
The best outcome to expect from this type of consolidation program is that the negotiation between the lenders and the consolidation company will lead to a mutual agreement. This will be accepted by remitting a single monthly payment which will then be applied to outstanding debts.
You will have to submit monthly payments to the consolidation company to disburse the funds to your payday lenders.
With each option that you choose to avoid payday loans, they come with pros and cons. Experts recommend that the best route to take is to work with a credit counselor or a third party to place a payday loan consolidation. This option tends to be more successful and with lower risk as the third party helps you steer your finances. You will also benefit from better repayment terms.
Benefits of Payday Loan Consolidation Programs
- The initial consultation is usually free
- You will benefit from lower interest rates on loans
- The monthly payment on your outstanding debts is lower
- Over limit fees and late payment fees, and other charges are eliminated or reduced
- Only a single payment is required monthly to one company
- Letters and stop collection calls are delivered to your home
- It is easy to budget your finances as the single monthly payments make things easier
- Your credit scores and ratings can greatly improve as you will be able to pay off your accounts
Clear Your Payday Loans with Encompass Recovery Group
Working with a top payday loan consolidation company is the first step to gaining success over your payday loans. Encompass Recovery Group has been rated as the number one payday resolution center. We have helped thousands of our clients become debt-free and we’ll be happy to help you too. Contact us today and start your journey to freedom from payday loans!