These are people who can’t manage their loan or can’t repay all the fees and rates (apr) on time. if you are one of them, then you how frustrating it can be.
You have to deal with high credit card balances, home loans or debt for medical treatment. The sad part is that most of them get to live from payday to payday. Lucky enough, there is a way to get real help – take out a debt consolidation loan.
This kind of quick loan provides tremendous help to all debtors with unmanageable personal debt.
Personal loan borrowers should be careful as working with an illegal company to consolidate your payday debt can get you into even more serious financial problems. Remember that the consolidation program is meant to improve your financial life and not to further damage your credit report.
This is why we’ve decided to share some financial concerns about real personal loans for consolidation. We provide you, the borrower, with tips to keep in mind so you don’t get scammed. This will also help you get the real deal when it comes to choosing a financial company that offers debt consolidation services.
Payday loan consolidation is a financial instrument used to provide repayment for your current debts by combining them into one debt with a new interest rate (apr). This minimizes the number of bills and the interest rate you are obliged to repay.
Usually, consolidation loans are unsecured. They are based on your promise to return the whole amount. Of course, there are companies that will offer you secured personal loans. Such loans are guaranteed with a valuable asset such as a car, home, or insurance policies in your name. You can only get your assets back once you clear the whole amount. However, you should feel free to refinance the loan if you get better financially. This will help you get more convenient interest rates and terms.
You can view the real benefits of debt consolidation in multiple ways.
One is that the terms of repayment are more flexible than regular payday loans. The loan borrower gets a few months or years to make repayments.
Secondly, the loan repayments are monthly and fixed. The terms are much more predictable than what is seen with other types of personal loans.
Thirdly, your capacity to repay the consolidated loan is analyzed. That means the pdl consolidation company will not help you with a loan that you cannot afford to pay. So, there are fewer chances of you losing your home or car due to defaulting.
You can also refinance the debt consolidation loan. This will help you get a newer loan with best terms and rates.
Lastly, the rates and fees for consolidation loans are lower than payday loans.
The answer to this question is most certainly no. We won’t take hold of your money. As soon as you pay us, we will pay your lenders the outstanding loan.
However, bear in mind that there are other pld help companies out there that get to hold your money for up to 3 months without making any payment to your lenders. This way, they pay themselves first, not your creditors.
This is not only a bad business practice, but it can also get one into real financial problems with the lenders.
With payday consolidation, the amount of money that you pay every month varies.
A debt consolidation calculator can help one determine how much they will eventually pay. This calculator will, first of all, help you determine whether debt consolidation is the best option for you. The pdl calculator will also suggest the most effective way to consolidate your payday loans. It also and estimate how much you will save if you apply for a personal loan for debt consolidation.
The second sign of honesty is whether the debt consolidation loan provider would actually take over your existing loans. This means that the company name will stand on your loan documentation. A scam company most certainly won’t do that.
The reason for taking over your loans is that we become the loan holder and your former lenders will now have to deal with us.
In case you decide to not make the necessary payments to our company, the contract between you and us becomes null and will void automatically.
This means that we become the sole loan holder and thus free ourselves from any further payments to your lenders. In other words, you return to where you were at the beginning and have to deal with your lenders all by yourself.
This is one important question to ask before you consolidate pdl. It has a simple answer – no it isn’t. All one needs to do is go to your bank branch and ask to cease the automatic payments from your account towards your lenders.
Discontinuing them would not affect your account in any other way. This means that if you have automatic deposits or other automated payments, they will not be affected.
90% of our clients stop the auto withdrawal while the other 10% simply close their accounts, but this is not necessary.
Keep in mind that closing a bank account may have a negative impact on your credit report and eventually your credit score.
The fees to consolidate payday loans depend on the individual pdl debt situation of every client. It may vary based on the various debt amounts.
When our client requests a free quotation, he will be provided with our fee which is calculated based on his personal financial situation.
Once you complete our program, we will provide free credit counseling to help you live a debt-free life in the future.
When we help you consolidate credit, our company will collect fees through the payments you make after enrolling in our pdl consolidation program. For example, the first payment is our fee. Every other payment goes to your lenders until your payday loan debt is completely cleared.
If you want to consolidate payday loans, the payment schedule for the new personal loan depends on the total amount of your debt.
Based on the debt level, your payment schedule maybe 6, 12 or 18 months. Once enrolled in our consolidation program, it is up to you to decide when you prefer the repayment procedure to start.
Do not forget to always review the credibility of your potential pdl lender. Never approach institutions that have a doubtful past with clients’ complaints or legal prosecution. the best company should also offer free credit counseling services to ensure that one does not get into debt again.
Remember that the market is large and there is always an alternative consolidation loan provider out there.
If your potential lending company is asking for unnecessary information like a social security number, account details or some other personal data, you should reconsider your decision to work with them.
The same applies to those companies that offer free credit counseling services. As said before – it is a large market and there are a lot of best consolidation companies to work with.
A debt consolidation company does not need to know all your information prior to providing you with their loan consolidation services. Therefore, avoid providing your card details among other delicate information.
No pdl lenders cannot send a payday loan (pdl) borrower to jail if the borrower does not make payments. However, authorized lenders can sue a borrower in court.
Bear in mind that upfront fees are not mandatory and if a company asks for a very high upfront fee for their service, you should simply move on to the next consolidation loan provider.
The best company does not ask their clients for an upfront fee. It is common that they provide you with their services first.
Hopefully, this article has answered the most important questions that you may have about payday loan consolidation. Nevertheless, if you need a debt consolidation loan and have any other questions, please do not hesitate to contact us by email or call 800-522-9222.