What Is Payday Loan Consolidation?

by Payday Pool Content Writer

Having problems with payday loan repayment? If yes, then try to consolidate payday loans as soon as possible. But before you make a final decision of consolidating payday loan debt, you must know the process of how it actually works.

A debt consolidation company will offer you a payment plan that you can afford. Thanks to this payday loan debt relief plan, you can consolidate your payday loan debt and can regain control of your checking account by making regular payments and can also save yourself from the harassment of calls from creditors.

Most debt consolidation companies will offer a free counseling where your current financial situation will be evaluated. This will help you get a flexible and affordable payment plan.

When you are struggling to pay high-interest pdls even after making your best efforts, you can consider this payday loan debt relief plan. Such kind of debt relief program helps you pay off cash advance loans and get control of your finances yet again.

Factors On Which Your New Monthly Plan May Depend Upon:

•    How many lenders are ready to cut down the interest rates

•    How many outstanding you have

•    The amount you can afford to pay as interest rates

Know How A Payday Loan Debt Consolidation Program Helps-

•    Helps in reducing your monthly repayments

•    Helps in slashing high interest charges

•    Save you from continuous collection agencies calls

•    Keep you away from being sued

•    Consolidate your debts into one fixed monthly payment

Ways To Get Out Of Payday Loans-

•    Make a spreadsheet of all your incoming and outgoing finances and reduce the unnecessary expenses

•    Try to reduce your auto expenses or rent/own a smaller and cheaper home

•    Go for a part-time job and earn extra income

•    Try to curb your dining out or other entertainment expenses

•    Cut household bills as much as possible and save money

Payday Loan Debt Consolidation Pros And Cons-

Pros

•    No advance fees

•    No requirement to pay late fees

•    No need to endure automatic debits

•    Only one monthly payment plan

Cons

•    Need to avoid pdls in future

•    Need to comply to consolidator’s advice

•    Your collateral is at risk in the secured loan category

•    The long term loan

Know How Payday Loan Debt Consolidation Works:

The consolidation company will directly talk to your lenders to reduce interest charges. They also pay down your debts so the additional fees are reduced or completely vanished. The consolidation companies will also offer you debt free counseling. They put you on an easy and hassle-free payment plan, so you can become debt free with ease. Debt consolidation loan are designed to merge multiple high interest payday loans into one monthly payment loan with vastly reduced interest rate. The obvious benefit of taking up a payday loan debt consolidation plan is that now you pay less interest and can manage payments in a much better way.

Will I Go To Jail For Not Paying A Payday Loan?

No you cannot go to jail for not paying payday loans. The lender will put pressure on you though through suing you court and informing to credit agencies about your non-payment, so that negative mark can hurt your credit profile.

Know The Difference Between A Debt Consolidation Program And A Debt Consolidation Loan-

Consolidation Program

•    This is a better choice to get out of payday loan debt as here you get a monthly payment plan with affordable interest rates that fits your budget.

•    Under this program you don’t have to manage multiple loans

•    No assets are required to put at stake

Consolidation Loan

•    This is not good for a payday loan debt relief as you need to put your asset at stake

•    If you opt for an unsecured option of debt consolidation loan, you need to be prepared for paying high interest charges