Latest posts by Henry Githinji (see all)
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Navigate your way out of payday loan debt
Payday loans can offer a useful way to borrow a small amount of money for a short period of time. You might have an unexpected bill to pay with days to go before your next paycheck. In such circumstances, a payday loan could be a simple and affordable option for getting hold of the cash you need and fast.
Unfortunately, payday loans are often taken out for the wrong reasons, such as for paying off existing debts if a payment deadline is approaching fast. People can quickly fall into serious debt if they take out new loans to pay off existing ones or have multiple payday loans at the same time. With each payday loan having its own repayment date, it’s easy to see how financial management could quickly fly out the window.
Fortunately, there is a solution for borrowers who are receiving daily phone calls and letters from payday loan lenders, in the form of payday debt consolidation. This is becoming increasingly popular in the US, as it enables people to consolidate their debts into a single monthly repayment. Not only that, but professional negotiators can talk to lenders on your behalf and reduce the overall balance of your debts and bring down your monthly payments.
In order to benefit from payday loan consolidation, you will typically be asked to open a new savings account and pay money into it each month. There is likely to be a discussion with your payday loan consolidation company about exactly how much you can afford to deposit into this account each month. The funds will ultimately be used as a basis for negotiating with lenders and to pay off your debts month by month. Once a month, you will make a monthly payment to your payday loan consolidation company, which will then divide the funds between the various lenders according to an agreed schedule.
Payday loan consolidation should be a serious option for consideration if you have multiple payday loans. It could save you money in the long run. And in the short term, it will lead to reduced stress and a feeling of being more in control of your finances. Finally, there will be an endpoint in sight as you will be able to pinpoint the exact moment in time when you will, at last, be free from debt.