Category: Payday Loan Relief

5 Benefits Of Working With A Payday Loan Relief Company
[caption id="attachment_38" align="alignleft" width="300"] Payday Loan relief[/caption]

Are you feeling trapped and overwhelmed by numerous payday loans?
Do you, despite doing your best, still feel you cannot clear off your debts as fast as you’d wish to?
Well, payday loans are debt traps that are easy to get into and difficult to escape.
If you are in such financial distress, you can seek debt relief.
With a loan relief program, you can consolidate all your payday loans into a single monthly payment at a reduced interest rate and flexible payment plan monthly payment
So, instead of the many monthly payments to different lenders, you’ll pay off all these loans and focus on one monthly payout and lender.
Why is it easy to fall into a payday loan trap?
Payday loans are accessible to anyone as long as you have some income and an active checking account.
All you need to do is fill out the loan application form on the lender’s website, and after approval which is almost instant. The funds will be credited to your account.
The process is pretty straightforward, but the repayment schedule is not as smooth as many payday borrowers would imagine it to be.
The high-interest rates and horrible repayment structure make these loans so expensive and difficult to repay.
Most payday lenders don’t accept a partial payment, and if you are not able to make the full amount, they’ll charge renewal fees and rollover your loan.
This then becomes a never-ending cycle that accrues more interest and fees. In no time, you’d have accumulated more debt than you intended to borrow.
Since many payday consumers are low-income earners, paying off these debts then becomes a challenge that makes them vulnerable and threatens their finances.
How can one escape the payday loan debt trap?
While it may look like a daunting task, taking the conscious effort to pay off these debts and be debt free is worth the sacrifice and hard work.

Below are some strategies that’ll help you clear off your debts.

Add all your debts and pay those with the highest interest rates first
Make a list of all the loans you owe plus their interest rates.
Prioritize them, and start by paying the most expensive to the cheapest.
By paying off loans with the highest interest rates, you will save money that you can channel towards clearing other loans.
Make a budget and change your spending habits
A budget will help you track your income vs. expenditure.
Know how much you bring home, make a list of all your expenses, and make an effort of not spending more than you earn.
Avoid impulse buying, and spend only on necessities. This will free up some money towards your debt obligations.
It also helps to keep off expensive purchases until your paycheck arrives instead of borrowing.
Resist the temptation of rolling over your loan
No matter how cash-strapped you are, don’t roll over your payday loan.
If you roll over your first loan, the probability that you’ll roll over the second one is 100%.
This will then become a vicious cycle that’ll cause you to lose more money in renewal fees and accruing interest.
You could borrow from friends or family or take an advance at work, but don’t take out another payday loan.
Save some cash for rainy days
Avoid over-reliance on payday loans by having some money set aside to use during emergencies.
Make an effort to save even $10 every month. You can ask the bank to debit it from your paycheck to your savings account directly.
You can increase this amount by sticking to the budget and making sacrifices to spend on only essential things.
Ask for payday loan relief
If you are doing your best to escape the debt trap without much progress, it’s okay to ask for help.
You can approach a debt consolidation company, and have them negotiate with your creditors on your behalf.
The debt relief will talk your creditors into wavering off the fees and accrued interests on your loan. They’ll also come up with a flexible and affordable payment plan that will not negatively impact your credit scores.
You can either choose debt settlement or payday loan debt consolidation. A credit counselor will give you valuable advice and help you decide on what suits you most.
Debt settlement involves withholding payments to creditors and setting some funds on an escrow account with the debt relief company.
The company will then make a single payment that had been previously agreed upon to your lender. This amount will substantially reduce your debt, and the more consistent you are, the faster you’ll get out of debt.
Payday loan debt consolidation, on the other hand, involves consolidating your payday loans, credit card debts, and cash advances into a single one-time payment that you’ll make to your creditors.
You’ll then focus on repaying one loan at flexible repayment terms and affordable interest rates.

Benefits of payday loan relief
By consolidating your loans, you’ll:

Save money
Different lenders charge varying interest rates.
Having many payday loans means you’ll be losing a lot of money on high interest and charges.
By consolidating your payday loan, you’ll get an affordable loan option at reduced interest rates that’ll help you save money.
Help keep collection calls off your back
There’s nothing as nagging and irritating like the numerous phone calls from collection agencies.
The loan relief company will negotiate with your creditors to come up with a payday loan settlement plan that works best for you.
In a bid to regulate the payday loan industry, the state has put laws to protect the consumer.
It’s against the federal laws for collection agencies to hound you with calls or contact your family or employer regarding your loan.
When you are in the debt relief program, the loan relief company will save you from such calls.
Shield your bank account from predatory payday lenders
If you authorize direct debits from your bank account, it’s time to revoke that authorization.
The loan relief company will stop hungry creditors from accessing your money.
This gives you control of your finances and credit.
Get credit advice
The company offers free financial advice to its clients on how to manage their finances, make a budget and help them get back to the right financial path.
Apart from helping you be debt-free quickly, you’ll also get valuable insight into how to build a stable financial future.
Be stress-free
To avoid the hassle of making several monthly payments to different lenders, you’ll consolidate all your debts into a single payment that’s both affordable and flexible.
You’ll get the option to choose a payment plan you are most comfortable with and lets you have some cash for your daily expenses.

If you are feeling overwhelmed by payday loans, don’t suffer in silence. Contact a loan relief company and let them help you escape the debt trap you got yourself into. Once you pay off all your debts, make an effort never to look back with the above tips.

Getting Out Of A Payday Loan

Payday Loan Relief

Stretchy Loans

When you have a lot of financial responsibilities, one of the easiest ways out is to seek credit. There is nothing wrong with getting a loan for as long as you are able to pay it on time. There are instances where your finances and credit get mismanaged. In that case, the person has a hard time paying back the loans. It gets more difficult, especially when you are paying a payday loan.

The interest rates are high and any delay in payment can make it more difficult for you to repay the whole loan. Getting out of a payday loan is never easy but there are definitely ways that you can use to improve your finances. It takes time and sacrifice on your part.

Let’s face it. The fact is that when you are having a hard time paying back the loan, it can actually drag you into a trap, especially when it comes to payday loans which are considered to be high cost loans. The good news is that there are different ways for you to repay your debt. These are some of the strategies that you can use in order to pay back your loan:

  • Pay off the loan using your savings
    For many people, using their savings to pay back a loan is not the best way to do it. After all, you don’t want to touch the money that you have been saving for a long time. But there are instances wherein when you weigh in the benefits and the cost of using your savings to pay off the loan, the benefits outweigh the costs.

Instead of you having to pay for expensive interest rates and other costs related to your inability to pay back the payday loan, it is much better that you use some of your money in your savings to pay back your loan. Then again, this will only apply for people who have savings. If you have some cash in your account, you can use some of this money in order to pay your loan and in that way you can focus on earning money and saving for the next time. Use that and once you are able to pay back your loan, you can focus on other important things like earning additional income and increasing your savings.

  • Ask for extended repayment
    If you are really having a hard time paying back your loans, one of the options that you might try to use is to talk to your lender and ask if there are options available. You may want to request your lender to extend the repayment. There are some lenders who might offer you an extended payment option as a form of relief.

 

You should prepare yourself that not all that lenders are flexible when it comes to the terms of the payday loans that they provide. If you ask them and they say yes, they allow you to have an extended repayment, you get to have more time to prepare for the cash that you need in order to pay back the loan.

In having an extended repayment plan, it does not mean that you’re able to eliminate all of your financial responsibilities. It just means that you have much more time to pay back the loan so you don’t have to worry about having to pay for a lot of charges.

  • Talk to a credit counselor
    When it comes to eliminating debt, every person faces different circumstances. There are instances wherein if you only have one payday loan and you have a stretchy source of income, it is much easier for you to repay back the loan. For people who are heavily indebted, it gets more challenging, especially since there are many things that you have to consider. One of the best ways is for you to seek the professional help of a credit counselor. You can actually look for a foundation.

 

These foundations aim to provide information and at the same time available options to help those who are struggling to get their financial freedom. If you feel like you don’t have any more option left, it is always in your best interest to ask for help from people who know the different strategies that you can use in order to get out of your payday loan.

  • Apply for another loan
    This option is not the most popular option, especially if you are already having troubles with your current loans. You should only get another loan if you only have to pay back one loan and it is much costlier for you to pay for the late fees instead of getting a new loan. If you come to a point where you have already a lot of loans that you need to pay back, the most logical thing to do is not to get another loan that you might end up having a hard time paying back again.
  • Find ways to earn extra cash
    People who have enough money or cash does not need a loan unless it is really needed. Again, the trouble in paying back your payday loan stem from the fact that you are struggling with your finances. If you want to really get out of payday loans, you need to look at the root causes of the problem. One of the ways for you to avoid having to apply for a payday loan is for you to strengthen your finances. You should not just rely on one income. There are definitely lots of ways for you to have better finances, good credit standing and more money in your bank account that you can use in cases of emergency.

 

Here are some tips to follow:

  • Do part-time jobs
    Working full-time does not necessarily mean that you can pay for all of your expenses. When the need arises, it is hard to just rely on one source of income. That is why there are a lot of people who venture in different kinds of jobs. Some may even have part-time jobs or even three jobs just to be able to save money and to have the funds that they need in cases when they needed the most. By having a spare income, you don’t have to worry about financing certain expenses because you know that you have at least some cash that you can use for contingency.
  • Cut down on expenses
    One of the most common problems that people face nowadays is that they tend to spend more than what they can actually afford. At first, this might appear as if it is not going to cause any long-term problems. But come to think of it, if you are having a lot of expenses that are not necessary or you have luxuries that you cannot afford, the tendency is for you to find ways to finance these expenses.
    Once you go beyond the limits of your income, you resort to other means like for instance applying for loans until such a time that you are already in a debt trap. Whether you want to get rid of your payday loan or you simply want to manage your finances, it is very crucial that you know how to spend your money wisely.
    Check your expenses and make sure that you only buy the things that you really need. There’s nothing wrong and spending on items that are luxurious and can give you happiness. What is wrong and when you tend overdo it and you know that you cannot afford it. Just sped for the things that you need.
    Work overtime.
  • Another way for you to increase your income is to actually work overtime. If you feel like there are so many words that you need to finish, you can actually work all the time which gives you the chance to have extra cash on your paycheck. But having the opportunity to work additional hours, you get paid more and this is a very easy method for you to augment your income and at the same time help in paying off your payday loan.
  • Do a garage sale
    When you are looking for ways to pay off a loan, you need to be creative and at the same time, resourceful. You can actually do a garage sale by putting out all of the things that the saying are no longer needed. Not only do you get the chance to clean your stuff and to clear out all of this unnecessary things, but you can also actually make money out of it. Although the amount that you can raise is not that big especially if you don’t have a lot of things to sell, it can actually give you at least some amount to pay off your existing payday loan.

Take the time checking for things, personal items, furniture, and other belongings that you want to get rid of. Once you have finally identified these things, you can make a list and start doing the garage sale. For all you know, you can actually raise a good amount of money especially if you have good items that people will want to buy.

  • Start a side business
    Another possible way is for you to start a side business. Know that it does not mean that you really have to find a big business because it also means that you will need to get another loan to capitalize your business. But if you are going to improve and have a look at the different prospects and ideas where you can spend your energy and make a business out of them, you can actually find that there are many businesses that require small capital.
    Things may get really challenging at the beginning, especially when you are doing your full-time work and don’t have enough time to manage your side business. But as you spend more effort and learn more about your business, you will notice that you will get additional income once you generate sales and profit.
    You may also ask your family and friends if they want to have business partnerships with you. In that way, you don’t have to raise the whole amount of capital. For some people, what they do is they make use of their knowledge or even their personal hobby into a business. This makes you enjoy what you like doing and at the same time generate extra cash to get out of your payday loan. Who knows your business might expand and become big in the future. If this happens, then your problem is solved.
  • Be frugal
    When you ask rich people, you often notice that many of them share the same personal habits when it comes to spending their money. You will see that many really rich people don’t even spend on the things that ordinary people want to buy. Being frugal when it comes to spending is the very first step for you to avoid incurring debt and will help you avoid having to get a loan.
    For example, you may want to use coupons and deals whenever you shop for grocery items and other personal stuff. Many people may say that these coupons do not have that much effect especially since the discount is not that big. But when you actually calculate the total cost over the long. As time passes by, you can see that the discount accumulates and you can actually get a good deal.
  • Make a budget
    This is very much related to the previous strategies and related to managing your finances. If you are frugal, one thing that you should know and you should do is to create a weekly or a monthly budget whichever is much easier and more convenient for you. The reason why you need to make a budget is for you to be able to track down your income versus your expenses.
    When you have a budget, you can see where you are spending your money and how much you are spending on a particular type of expense. By seeing your budget, you know if you are actually overspending on things that you think are not necessary. Even if let’s say that you have a payday loan and you have other laws that you need to pay back, it’s still very important that you have a budget.
    This will ensure that you will no longer repeat the same mistakes that you did in the previous time when you were in need of money and you had no choice but to avail a payday loan.
  • Use your vehicle
    With Uber and other car applications, you know how the chance to earn extra cash with your car. This is now becoming a very popular stream of income not just among male drivers but even among female drivers. The nice thing about using your car for Uber is that you get to choose your schedule.
    It means that if you feel like you want to drop off someone in a particular location you can just turn on the app and start driving. If you do this on a regular basis, you will notice that you can actually get a good amount of money. This is a very feasible and less stressful part-time job that you can do to help you escape the cycle of having to about paying back your payday loan.
  • Rent a room in your house
    Rent costs can be quite expensive nowadays. Imagine if you are renting a big flat and there are many rooms and unoccupied, it’s just a waste. So why don’t you rent out the other rooms to get additional cash? This is a very steady stream of income and you don’t have to worry as to whether you will get additional money since the tenant will really pay for the monthly rental. It’s just a matter of being careful and selective when it comes to tenant selection.
  • Consider Debt Consolidation
    Considering debt consolidation has its share of pros and cons. There have been numerous cases were in people experience successful results, there are some people who experienced problems.
    This is one of the reasons why you need to make sure that you know what you are getting into. Before you even finally decide that you want to consolidate your debts, you need to find a reliable company or organization that you can trust and you know can really help you and consolidate your debt into one simple debt for you to avoid paying hefty fees and other costs.

 

Benefits of Loan Consolidation

In consolidating your debts, you can enjoy the following:

First is that it gives you the opportunity to have knowledge about financial management. Debt consolidation is highly recommended for people who have several outstanding loans and sometimes it can be really difficult for you to manage your responsibilities. So if you consolidate your debt, it goes into one account and it’s easier for you to track.

Another benefit that you can get is that you are able to negotiate for lower monthly repayments. Of course, lenders are different when it comes to their repayment plans. However, there are cases where lenders are willing to lower down your monthly repayment in such a way that you are able to pay back your loan.

Good Finance Management Skills

At the end of the day, your goal should not just be focusing on getting out of a payday loan. Your goal is for you to get out of that payday cycle. Once you learn how to manage your finances well, it is easier for you to pay or finance for other expenses.
When you have good financial standing, it also means that you can improve your credit score. Having a better credit score enables you to have access to different loan options. This means that you don’t necessarily have to get a payday loan in the event that you are in need of money.

Why consolidate?

Need to consolidate payday loans?

We can help

Get out of debts

Why you may find it helpful?

When faced with financial problems related to loan repayment, most people look for options to get out of debt. There are options that a debtor may settle for and these include seeking funds to pay off the debt, debt settlement, debt consolidation or filing for bankruptcy. Debt consolidation may turn out to be the best option in changing people’s situation. Why consolidate?’ you ask. Well, read on to find out.

Payday loan debt consolidation lets you bring together all your loans and use the services of payday debt consolidation companies to clear your payday loan debt or any other types of debt. Under such programs, you will make a single payment to the loan consolidation company. They will then forward the payment to the various creditors on your behalf. This offers you the benefit of spending less time and less administrative work on making repayments.

Too many payday loans? Close to Bankruptcy?

Debt consolidation is a good option if you are nearly filing for bankruptcy. This gives you the chance to get back on your feet, if you still have the capacity to pay your loans, even if it is over a longer period of time. This may even help you make a positive impact on your credit score. This is the advantage that debt consolidation has over filing for bankruptcy. When you consolidate debt, you stand a chance of improving your financial position after clearing the debt.

How can we help you with payday loan consolidation

You might also be experiencing increasing debt in your name, thanks to high interest rates. Debt consolidation eases this pressure on you to dig deep into your pockets. This is because the debt consolidation company negotiates for better terms of repayment on your behalf, including lower interest rates. The goal of debt consolidation is to reduce the total amount of debt. Therefore, if you know that you are currently struggling to repay the loans borrowed and that this situation may probably be even tougher in the future with negative cash flow, payday debt consolidation may be the best option you have.

When you consolidate payday debt loans, you are able to get some relief from not having to deal with the creditors directly. This is beneficial especially if you have been receiving calls or mails from them constantly. You are doing your best to repay the payday loan debt and this pressure adds psychological stress on top of the financial stress you are already experiencing. When you consolidate payday loan debt, you are able to focus on repaying your debt in a more relaxed manner as the debt consolidation company takes over and deals with your creditors. Your time will no longer be spent on responding to the constant communication from creditors. You will be able to put your effort into working harder to clear the debt.

Give Some Relief
Consolidate Payday Debt Loans Give Some Relief

Apply Today if you want payday loan consolidation

Payday loan consolidation is a good solution for getting out of debt. There are many success stories of individuals

who have managed to clear their debt after joining a debt consolidation program suitable for them. You could probably be the next success story. I hope that now you are not asking ‘Why consolidate?’ but are convinced that payday loan consolidation is the path to being debt-free.

Payday Loan Forgiveness

Payday Loan Relief

A payday loan is a short-term business financing that has a high interest payment. Whenever you need loan forgiveness, you can talk to a licensed credit counselor and get the help you need.

A payday loan is a short-term business financing alternative that is based on the debtor’s income and credit profile. In most cases, they are advertised as a way to finance the unexpected purchase that a business might experience in a couple of days before the month ends. Unlike other types of business or personal loans, payday loans are taken out over days instead of years, and they can be used to cater for emergency expenses until income arrives.

With a payday loan, it is easy to get into a debt trap since they have high interest rates. You can easily depend on this type of business financing, and roll over one loan several times to postpone paying back. Easy accessibility of the loans results to an expensive habit and the cash you use to maintain those loans will hinder you from getting back to your feet. Payday forgiveness is one of the approaches that can help you get rid of payday loan debt.

What happens if you fail to repay a payday loan?

Failing to repay your payday loan can cause a barrage of bank overdraft charges and endless collection calls. This will also hurt your credit rating, lead to income garnishment and lawsuit.

Here is what to expect once you fail to repay your payday loan.

  • Bank withdrawals and collection calls
    Creditors who specialize in giving out the payday loan will never be lenient to you once your debt is due. They would initiate an automatic withdrawal from your bank account if you had allowed them to access your account in the loan agreement. If the withdrawals fail to go through, they might break the charges into small portions so that they can get access to any amount available in your account.
    Each unsuccessful attempt might bring a bank charge against you and the efficacious debit attempts will drain your account, making other transactions to bounce. This will lead to more charges.
    Apart from that, expect to get endless calls from the lenders and get letters from their lawyers. They will also contact your family members and friends you presented as references when you obtained the loan.
  • No jail term but expect to get more threats
    Defaulting a payday loan is not a crime and it is unlawful for the creditor to threaten the borrower with a jail term or even arrest. However, some creditors have thrived in employing bad-check laws to file criminal grievances against debtors, with the jury speciously rubber stamping the lawsuits.
    Any person that has been threatened with jail term or detention for failing to repay a payday loan should call the office of the attorney general in his or her country. Do not flout a court order prompting you to appear before the judge even the case was filed erroneously.
  • An opportunity to negotiate
    A smart creditor will rather get the debt directly from you instead of selling your debt to an external collection company. The third-party debt collection organization might pay less amount when buying your debt. If it is possible, you can begin repaying your loan by giving out 50% of your loan. You can tell your creditor that you can’t pay the loan and you are contemplating to file for bankruptcy. Once you mention being bankrupt, they will be serious since the lender know bankruptcy means you have nothing.
  • Court summons
    The majority of lawsuits against debtors are for a small amount and in most cases, the lenders will win the lawsuit because the borrower fails to appear before the court. For this reason, you should not fail to attend to court summons as this will help you get a payday forgiveness.
  • How to get out of a payday loan cycle
    When you have been trapped in a cycle of payday loan debt, there are numerous ways to get out. If you had secured a payday loan and failed to repay by the due date, you might have decided to borrow another just to push you. Note that this will result in an additional loan with extra charges, possibly followed by another and with time, the debt starts to accumulate. If you find yourself in the same scenario, then there is new hope for you. With a proper strategy and appropriate planning, you can get out of the payday loan cycle and avoid the high cost of the loan.

Reasons for taking out several payday loans

Recent research has indicated that many debtors end up paying excess cash on charges than what they get from payday loans. This is because payday loans are paid back within 14 days. This gives the debtor little or no time to get enough cash to repay the loan. That is how a payday loan traps business owner in debt. The Consumer Financial Protection Bureau approximates that more than 85% of payday loans result in the debtor obtaining another loan to offset the previous one. In this case, you will need loan forgiveness since these short-term loans are costly and you might not get the best means to repay them.

  • Handling your debt
    Consolidating your debt is one of the things that can help you get out of the payday loan cycle. Since payday loans come with high interest rates, you will need to stop getting more loans and merge all your debts into one big loan that has low and manageable APR. If you have already spoiled your credit score and you need to consolidate the debt, your best alternative is to obtain a business financing from a credit union or get some help from the relatives or close friends. The alternatives to consolidate the loans comprise credit unions, balance transfer credit cards, and faith-based corporations. You can as well ask some help from friends and relatives.
  • Personal loans from a credit union
    Credit unions are owned and managed by its stakeholders. For this reason, their terms and conditions are flexible and the business financing they provide more accessible to individuals with bad credit and history of debt. The credit union might look at more than just your credit rating when deciding to approve your loan.
  • Faith-based agencies
    Numerous faith-based agencies are coming up in the lending industry to assist those struggling to get out of the payday lending debt cycle. The organizations agree to pay your debt in full such that you can repay them the loan over a set duration, always without any charges or interest.
  • Balance transfer credit cards
    This kind of transfer allows you to move your debt and pay small to no charges on it for a set duration. For instance, a balance transfer credit might give 0% APR for ten months. That is to say that you will get a 10-month break from paying the loan interest as you pay back what you owe. To use this alternative, make sure you have a balance transfer credit card that allows you to transfer your payday loan debt. When looking for the best card providers, you can opt for the one that provides longer zero interest duration such that you will have more time to repay your loan. Even though you will need an excellent credit rating to get the best balance transfer credit card, you might be able to get approved for some balance transfer credit cards with bad credit rating.
  • Ask friends and family for help
    Once you explain your situation with one of your relatives or close friends, they might be willing to offer some financial support that you might not need to take out more loans. This kind of personal loan has the benefits of no interest rate attached.If the individual you speak to cannot give you the cash, you can request them to co-sign a loan with you. However, you need to prove that you have the capability to make the monthly payments since this is risky for the cosigner and some might want to avoid putting their credit online.
  • Prepare a plan to get out of debt
    Even though consolidating your debt us a better way of reducing your interest and hence the total cost of the debt, it can’t work on its own. Debt does not arise from anywhere. If you try to evaluate your finances, you will get structural issues that made you look for the payday loan. Credit counseling and budgeting are effective means to create financial literacy and know how debt works. The moment you understand how to handle your spending behaviors and lower the expenses of your daily life, you will enhance your credit and lessen the possibilities of being trapped in a cycle of payday loan debt again.
  • Prioritizing debts with high interest
    The moment you know the loan amount and how expensive is each loan, you can plan on which one to settle first. Start by repaying those loans with high interest and then move to the debts with lower interest. Note that this will assist you to reduce the total amount you will need to pay at the end. With the charges that are equivalent to 3-digit APRs, payday loans will be your most costly debts. Moreover, you will have to wait for your next paycheck to have the complete amount or you will face charges to renew the loan. For you to get loan forgiveness, you need to reconstruct the debt or find effective ways to get the full amount immediately.
  • Request for an extended repayment schedule
    The manner in which payday lenders structure their payday loans makes them expensive and hard to pay. For this reason, it is important you get an effective way to restructure your payday debt. In this case, you can request to negotiate a payment schedule with your lending institution. Try to persuade the lender to give you an extended payment plan (EPP) that will split the loan into small installment monthly payments. This will allow you to have enough time to pay back the payday loan and you won’t face any extra charges or interest rates. You might be required to sign a fresh loan agreement with the terms and conditions of the extended repayment plan. Ensure that you go through it carefully and understand the terms before signing the agreement.

How to Get Rid of Payday Loans and Escape the Cycle

As a business owner, you might be tired of obtaining loans from payday lending institutions or having numerous payday loans that have trapped you in debt. While in this situation, the only thing to think about is how to get rid of the payday loan debt ASAP. Well, worry not as this post will show you how to attain that in simple steps. Your finances will appreciate the efforts you made for many years to come since paying the monthly bills will be easy. While it is easy to obtain a business financing from a payday loan lender or use an online lender, you might feel trapped in a continuous cycle of borrowing and need some payday loan assistance. With some careful planning, you can effortlessly get rid of the cycle of continually borrowing. Here are some of the steps to help you put a permanent stop to this cycle.

  • Establish a personal budget
    Putting together your realistic personal budget that comprises all your weekly and monthly expenditure and other financial obligation is the first thing to do. This will allow you to understand what you can repay the lender. Rushing to repay your loan one or two months early may bring more financial issues on future.
  • Call the payday lender
    the moment you have identified the amount you can afford to pay every month, contact your lender or lending institution that and tell them that you will not be able to repay the complete amount that was agreed-upon. Notify them of what you can manage to give, how frequent they will get the repayment and request for their understanding with your modified repayment plan.
  • Consider creating a new bank account
    Keep in mind that when you obtained the payday loan, you agreed to let the lending institution deduct payment directly from your bank account. If you are uncertain that they honor the modified loan payments terms, it might be important to open a new bank account to prevent the stress that a debit for the entire loan amount will be deducted from the account next time you get a paycheck.
  • Get prepared for emergency expenses in advance
    The moment you complete repaying the loan, go through your budget again with an opinion to balance it better by saving some cash every month for yearly expenditure. Don’t forget to save some cash for emergency purposes since some things just happen unexpectedly.

What are your rights with payday lending company?

Before you start fighting against the payday loans, you need to know your rights as a borrower when you enter the loan agreement. You need to understand how the payday lenders get away with losing money from debtors and what the law is doing about it. Consumer financial protection Bureau states that the lending companies are not legally bound to give loans at the lowest rates. However, the legislation requires lenders to disclose the cost of the business loans in terms of yearly APR.

Even though the exposé of the cost does not reduce the worries about the predatory structure of this business financing alternative, payday loans are recognized as an instant solution to a financial emergency. However, payday lenders understand that their business model is designed to keep consumers caged in debt the cant pay back.

Fees and interest

It is essential to note the language payday lenders use when structuring these business financing alternatives. These lenders get a chance to charge a high amount of interest because in the real sense, they are not taking the interest but a fee.

Features of a payday loan

  • These are short-term loans that are provided in a small amount. In many countries, $500 is the set limit even though it can range above or below this figure.
  • In most cases, a payday loan is paid back in one installment on the debtor’s following payday or once income comes from other sources. The deadline for a payday loan is usually 14 to 30 days from the date the credit was obtained. The due date is agreed-upon in the loan agreement.
  • When paying back the loans, consumers are required to write a check for the complete amount and it should be postdated. The payment will include the fees, or the consumer can authorize the lender to automatically deduct the cash from the bank account, credit union account or even the prepaid card account. In case you fail to pay back the loan on or before the deadline, the lender will cash the check or automatically debit the funds from your account.
  • The lender does not consider your capability to pay back the loan as you solve other financial problems.
  • The loan amount can be offered to you by cash or check, automatically deposited to your account or can be loaded on your prepaid card.

What Are the Dangers of payday loans

Payday loan firms can make their clients to become dependent on them since they charge higher fees and need a quick repayment of the loan. This condition makes it hard for the debtor to pay back the loan and still cater for other financial obligation. The majority of debtors obtain those loans from multiple different lenders and this makes the situation worse.

Once you depend on those loans, you will be left with less to pay for other expenses and you might end up spending everything in your paycheck. Even though they provide an instant financial solution, the loans don’t offer a long-lasting solution for the financial problems. once you think that you need a payday loan, evaluate your financial condition to get means to change your budget and plan your finances to determine if you can free excess cash.
Even though it is enticing, obtaining a payday loan for non-emergencies things like a vacation makes no sense that saving the cast over time.

 

Break the borrowing cycle

If you always depend on payday loans, you better stop now. You can pay the loan in small amounts so that you can reduce the balance and avoid taking another loan to stop the cycle. Ensure that you can handle the basic needs at home and use the remaining amount to pay off the loan. Find out if the lender will allow you to pay the loan in two installments instead of one to make the repayment easy.

You can also stop some spending until you repay the loan in complete and try to survive with your paycheck without securing another payday loan.

Avoid needing a payday loan

Proper budgeting and emergency finances can help you avoid taking out payday loans. In most cases, wanting a payday loan is the same as having constant late payments or overdraft fees from your financial institution. Planning for expenditures in advance is essential since it helps you avoid experiencing these financial woes.

Forgiveness of Payday Loans – Final word

If you need assistance and guidance to handle your payday loans, do not hesitate to talk to a reliable profit credit counseling agency. They will help you get the payday forgiveness you seek and feel confident with the solid strategy that allows you to manage your cash. Their assistance will comprise the payday loan relief and you will also get professional advice on how to pay back your loans effortlessly.

Payday Forgiveness Loans by Payday Loan Consolidation .com

Stop Paying Payday Loans Legally

Payday Loan Relief
Couple with financial troubles
Stop Paying Payday Loans Legally

Payday loans can literally suck the life out of you. They may seem like the best option when you are strapped of cash, but they can plunge you in a never-ending cycle of debt.

By taking out a payday loan, it means your credit score sucks; otherwise, you’d have gone for a bank loan.

The payday lenders have also intentionally structured these loans in such a way that you’ll have to make full payment with your next paycheck otherwise they’ll keep rolling over your loan. This then makes them difficult to repay and very expensive.

So how do you end the vicious cycle and stop paying payday loans legally when you feel overwhelmed?
Here’s how:
Why is it so easy to get trapped in a payday loan debt trap?
Payday loans are easy to access. All you need is an active bank account and proof of income.
These loans are unsecured, and your credit doesn’t matter. All you need to do is fill out the lender’s loan application form, and after approval which takes less than 30 minutes, the money would have been credited to your checking account. Easy, right?
The repayment schedule, however, isn’t as straightforward as you’d wish it to be.
Usually, these loans come with double digits interest rates and APR. In fact, according to a study conducted by Pew charitable trust, an average payday borrower pays $55 every two weeks to borrow $375 which is equivalent to 381% APR!
The repayment structure is in such a way that you have to pay off the full amount with your next paycheck. If you miss payments, the loan will accrue interest, you’ll be charged late payment fee, and in worse scenarios, you’ll even be sued by the lender.
Most borrowers end up rolling over their loans, and within no time, they find themselves in a debt trap that they can’t seem to get out of.
Since a majority of payday borrowers are low-income earners, they’ll take out these loans for the wrong reasons and spend them on their everyday expenses instead of using them for emergencies only.
It then becomes a vicious cycle which leaves the borrower with huge debts and penalties that are impossible to clear.
How to escape the debt trap
Here’s how you can escape payday loan debt traps and the financial distress that they cause:

  • Build an emergency fund and avoid over-reliance on payday loans
    Life is unpredictable, and sometimes it throws challenges that leave us in need of quick cash.
    Having some money in a saving account can help you out on such days.
    Start saving even as little as $10 per week. You can have the amount directly debited from your paycheck every month. This will help you out when you are stuck, and it will keep you from borrowing to fill the gap.
    You can also make a budget and change your spending habits. Having a budget helps you track your income and expenses. It will also help you focus on necessities so that you’ll be able to free up some money to save.
  • Sum up all your loans and start paying the high interest debts
    Make a spreadsheet of how much you owe and write down the interest rates of each loan.
    Pay off the loans with the highest interest rates first.
    This strategy will help you avoid incurring more expenses due to the accruing interest.
  • Negotiate for an extended payment plan instead of borrowing
    You could negotiate with your creditors to allow you delay payment.
    Some payday lenders are lenient to break down your payment into manageable installments.
    Make sure you ask if there are fees for the extended payments.
    Instead of borrowing to buy expensive items, you could wait until your paycheck arrives to make the purchase. You can also ask your employer for an advance to cover you up until your payment comes.
  • Look for other alternative and less expensive source of funds
    Instead of an online payday loan, you can apply for a credit card or get an affordable loan from a credit union.
    Most credit unions offer its members low-interest loans payable in flexible monthly installments.
    You can also borrow from friends and family but make sure you keep your promise to avoid breaking the trust.
    Try to keep your credit card limits below 30% and use them only for emergencies. This will keep you from accumulating more debt than you can pay.
  • Ask for payday loan debt assistance
    If you can’t get rid of the payday loans despite putting in your best efforts, you can opt for debt relief to help clear off your debts and stop the harassing phone calls from debt collectors.
    A debt relief company can offer you debt settlement or debt consolidation services to help you be debt free in no time.
    They’ll negotiate with your creditors to waiver off the fees, accrued interest and charges on your loan and come up with a payment plan that’s both comfortable and affordable.

What happens if you can’t pay your payday loans
Apart from the interest and charges piling, you also risk being sued by the lender.
By stopping payment of your payday loans, you may be left with nothing to depend on for your daily expenses especially if you authorized automatic debits from your paycheck.
Funds will be automatically debited from your account leaving you to pay overdraft fees in case there are no funds.

So how do you stop payday loans legally?

You can legally stop payment in these easy steps:

  • Revoking your authorization
    If you authorized and signed for automatic debits, you can cancel and revoke that authorization.
    Send a letter to the lender, and keep it as proof if he fails or refuses to grant your request.
    You could also talk to your bank to stop any automatic debits if the lender does not comply with your request.
  • Beware and stop automatic renewals
    If you allowed automatic debits, you need to beware of renewals fees.
    Some lenders deduct renewal fees only instead of deducting the entire loan amount.
    These deductions don’t change the loan amount leaving you with the same loan balance.
  • Know your rights as a borrower
    When the collection calls come, don’t feel threatened or stressed out by threats of a jail term or other implications.
    It’s illegal according to the federal law and if they tell you that, let them know you know your rights and you’ll report such threats to the financial service payment authority to take action against them.
  • Talk about your experiences with the CFPB
    If you had a nasty experience with any payday lender, tell your story to the consumer financial protection bureau.
    Their sole mandate is to protect consumers from exploitation by unscrupulous payday lenders.
    They’ll take up the case and help you out.
  • Check if the lender is authorized to give out loans
    If it was an online payday loan, there could be high chances that it’s illegal.
    In some states payday loans are illegal so check out if the loan is legal.
    If it’s not, you don’t have to pay.

Getting out of payday loans debt trap and never looking back may be an uphill task, but it’s worth the sacrifice and effort. Start rebuilding your credit scores and secure a solid financial future for you and your family. You’ll thank yourself for that.

What if you can’t pay?

Check out how to not pay loan