Payday Loans Consolidation

Manage your finances with Pay Day Loan Consolidation.

-Payday loan consolidation refers to combining all your existing numerous pay day loans into one and contributing a single payment towards it each month instead of making several small payments.This helps you to assess your debt amount correctly and effectively decide as to how much money can be put aside for debt repayment without creating a hole in your pocket. Opting for payday loans reflect poor finance management skills resulting in shortage of cash flow before a pay date. Payday advances are expensive short term cash advance with unreasonably high interest rates and finance charges on roll over which is not permitted by most of the state laws.The high interest rates and finance charges on roll over, forces strapped payday loan borrowers to engage in repeat borrowing thus getting strangled in the never ending debt trap.Consolidating your payday loans helps you to break free from the cycle of repeat borrowing by saving you on the high interest rates and finance charges helping you to fill in the shortage of cash flow which was not possible earlier even after receiving your pay check since a lumpsum from it had to be paid to your payday lender. An extended repayment plan helps you to stick to your planned budget and recover from the debt burden.
Most of the people trapped in the payday loan debt cycle would admit that they started off with the intention to meet an unexpected emergency or expense as they had too little or no savings and slowly this became a habit which led them to borrow irresponsibly without keeping track and finally when they did realize it was too late because by then most of their hard earned money was been taken away from their bank account as soon as their pay check landed on their bank account as they themselves had authorized the payday loan company to take out money from their account with a post dated check.Payday loans should be taken as a responsibility with an intention of returning the money within the time mentioned in the contract. A payday loan should not be used frivolously to satiate a wish which is not a bare necessity or emergency as this could lead to being an irresponsible spendthrift. Consolidating your payday loans stops you from this phenomenon with constant budget analysis and counseling and helps you to stick to your budget and save for repayment making you a responsible spender.
Payday loans not only disrupts you finances but also makes you vulnerable to the coercive collection practices of the payday lenders which is mostly non-complaint to the FDCPA law and state laws.It might put your privacy and social status at risk in additional to problems related to jurisdiction and applicable law. Pay day lenders might not inform you about the flaws while they aggressively market their product but the forth coming problems are just a step away once you give in to their marketing strategies to fulfill an unnecessary wish. A professional payday loan consolidation company knows what loop holes are used by the payday lenders hence can save you from the coercive collection practices of your payday lenders and guide you what legal steps to take against the payday lenders when they harass you. Initially payday lenders would try to persuade you not to consolidate the payday loans with professional help so that they may extract maximum from you and occasionally even increase harassing you soon after you enroll for a consolidation program. You need to patiently stick to the payday loan consolidation program and make regular payments towards repaying your debt to get back your finances in order and effective manage your finances.
Once you consolidate your payday loans and repay your debt it is important to spend responsibly and learn to manage your life style according to your income so that you plan and follow your budget and manage your finances effectively to save for the better future of yourself and your family.

Ways to Get Out of Debt

Debt settlement has become a way of life in the United States. With 40% of American households spending more than what they earn, it is no wonder that excluding home mortgages, the average debt per household is about $15,000. Assuming that minimum payments are made on this level of debt settlement with an average credit card interest rate, it would take almost 30 years to pay it off. Clearly, this is not the wisest option to deal with your debts. One of the scariest experience in any one’s life can come in the form of a tough debt over burden. Even though you might feel that you are in need of immediate help with your debts you might have difficulty and confusion in choosing the right debt relief option for yourself. It is of utmost importance to know all the debt relief options thoroughly before you can choose the right debt relief option for yourself, for eg- what are the debt relief options, how do they work, do you qualify for the debt relief program, the time frame required for the debt relief option to be effective for you and most importantly whether or not you can afford the cost of the debt relief program. If you are struggling to manage your debt, consider the debt relief options available and choose the one which suits you the best.  It will always be advisable to take the help of a debt expert who can counsel and guide you on your best suited debt relief option based on an exclusive review of your present income to debt ratio, budget analysis and status of your accounts in debt.  These are the following options which they might suggest you as per your requirement:

 1. Debt Consolidation

- Debt consolidation is often confused with Payday Loans Consolidation. The programs like debt management and debt settlement use payment consolidation to take one monthly payment from the debtor to distribute the funds to the creditors but debt consolidation is a debt relief option wherein the person takes one big debt consolidation loan which off course is an unsecured loan, big enough to pay off all the creditors and make one payment towards the debt consolidation loan each month. Debt consolidation is best suited for people with a good credit score and a steady income but most of the people don’t qualify for the debt consolidation loan with a credit score suffering due to being behind on payments and an unsteady income. Even if some one qualifies for a home equity loan which they can use to pay off the creditors, there is always a fear of foreclosure as it is a secured loan.

2. Debt Management and credit counselling

- This is a debt relief option in which a debt management company assesses all debts of a debtor, his/her income and available budget and negotiates a change in the interest rates and payments agreeable to both the debtor and creditor. All though the rate of interest is negotiated and the payments are consolidated in case of multiple debts, nevertheless the primary debt remains the same. These companies only work to reduce the interest rates with no guarantee of paying off the debts completely. The debt management company might reduce the interest rate by negotiating an accelerated payment plan that requires higher monthly payments, which the debtor may not be able to afford if the financial situation gets worse and in that case a default to keep up with the payment plan results in an increase in the interest rates once again but the debt negotiation company will not hold any responsibility once they collect their fees after giving you a reduced interest rate. More over, your credit score still gets affected after doing so much to pay off the debts. Instead of using professional help to reduce your interest rate and budget planning you can yourself speak to the creditor to reduce the interest rate which they willingly do and plan your own budget.

3. Debt Settlement or Debt Reduction

- Debt settlement or debt reduction (also known as Debt Arbitration) involves a reduction in the debt amount along with the interest (outstanding balance) on an account. The skilled debt negotiator is often not only able to waive off the interest and late fees but also reduces the debt amount substantially. The debt settlement companies use payment consolidation making it convenient for the debtor to get rid of the multiple creditor payments every month instead they make one monthly payment to the debt settlement company. The entire management of the debtor’s debts is vested on the debt settlement company where the debt negotiators, negotiate with the creditors to accept a payment lower than the amount owed on the account and satisfy the account. The settlement is either done as a lump sum or might be broken down into part payments depending on the the creditor and the amount payable. Usually, the savings is more in a lump sum payment than compared to part payments. Until an agreeable settlement is worked out, the debtor accumulates money to build up a settlement fund so that payment can be made as soon as a good settlement offer is available. Once the settlement amount is acceptable to both the creditor and the debtor, the creditor sends a settlement agreement letter and then the debtor needs to pay the amount promised on the account, to close the account. Once the creditor receives the payment, a settlement confirmation letter is forwarded from the creditor mentioning, the account to be satisfied and closed. This is reported to the credit bureaus by the creditor as ‘Paid’ or ‘Settled’. It has always been a matter of concern that debt settlement takes a long time to resolve the debts but now the debtors with the protection of the Federal Trade Commission can expect results pretty soon since debt settlement companies need to reduce at-least a portion of the debtor’s debt before collecting their fees. However, if the debtor enrolls current accounts in the settlement program then they have to wait for the accounts to get delinquent enough, before they expect results. Time frame of the debt settlement program largely depends on three things- delinquency of the accounts enrolled, debtor’s willingness to save enough to settle the accounts and the creditors’ willingness to settle. It is always advisable to consider the option of debt settlement if your financial hardship is forcing you to file bankruptcy which has devastating effects on your social life, financial condition and professional achievements. Moreover it reflects in your credit report for a long time making it difficult to apply new credit cards or loans. The creditors generally accept debt settlement easily as they might not get a chance to recover their money if a debtor with legitimate financial hardship files for bankruptcy.

4. Bankruptcy

- Bankruptcy is the last resort of getting rid of one’s debt burden when none of the above discussed debt relief options work out. Bankruptcy eradicates the most of the debts of the debtor but the consequences of filing bankruptcy will follow a long way on social, financial and proffessional aspects. There are two major consumer bankruptcies:

Chapter 7 Bankruptcy

This bankruptcy also known as liquidation bankruptcy where most of the debts of the debtor are discharged. The court appoints a trustee to evaluate the debtor’s exempted and non-exempted property and then it liquidates the debtor’s non- exempted property if the debtor has any non-exempted property. Whatever is recovered from the liquidation is used to pay off the creditors. In order to qualify for Chapter 7 bankruptcy, the debtor’s current monthly income should be lower than the median income of the state.

Chapter 13 Bankruptcy

This is also known as wage-earners bankruptcy where the debtors income is evaluated by the court appointed trustee who determines the debtor’s essential and non-essential expenditures and the money for non-essential expenditures is used to pay off the creditors through an extended payment plan. Chapter 13 bankruptcy resembles debt settlement so if you are considering chapter 13 bankruptcy, try debt settlement.

Bankruptcy has a long term effect on the life of the person filing bankruptcy, hence it is necessary to consult an experienced bankruptcy attorney and understand the pros and cons of filing bankruptcy and to determine which type will suit the debtors need.

A company like ‘My Debt Consolidation Care‘ would be happy to provide you a free consultation, with a financial consultant, expert in all the debt relief options using the waterfall approach which would help you to leave behind your predicament and choose the correct debt relief option for yourself. You can combine your multiple debts into one and make a convenient single monthly payment towards your debts, reduce the amount of your monthly payment and reduce the overall amount of your debt. Here are some of the benefits of the debt settlement program that ‘My Debt Consolidation Care offers:

- You can combine your multiple debts into one

- One convenient monthly payment wich enables you to save hundreds each month

- Reduction in interest rates

- No late fees

- Alternative to bankruptcy

- Eventual decrease in creditor call volume as we deal with your creditors

How our Debt Relief Program Works?