Do you get a phone call, email, or letter from your payday loan lender everyday requesting an immediate payment? Are you constantly looking for a way out from under the piles of payday loan debt, bad credit installment loans, penalties, and interest you have incurred? See more help here
Payday loan consolidation is becoming an extremely popular option to reduce, simplify and pay off payday loan debt that, in some cases, has been mounting for a long time. There are two main parts of any payday loan consolidation program: the reduction of balances and monthly payments, and the actual consolidation of several payments into one.
In order to reduce the balances and interest of your current payday loans, the company that you hire will negotiate directly with the lenders. In many cases the company you choose to work with will have some sort of idea about how much they will be able to reduce your balance or monthly payment because they have worked so frequently with the same lenders in the past.
Negotiations typically begin once you have saved enough money in a separate account that will be used only for the purpose of your payday loan consolidation program. This separate account is usually set up at the beginning of the process and you and your consolidation company will agree on a monthly amount that you will deposit into it.
Once enough funds have accrued your negotiators will have some leverage to begin their work with. Having the funds already in the account will allow the negotiators to give the lenders a timeline on when they can expect their funds.
The second part of the program is the actual consolidation, where the company you hire creates a payment plan for you that involve only one monthly payment each month. You will make the monthly payment to the payday loan consolidation company and they will be responsible for the correct disbursement of funds amongst your various lenders.
This will of course be set up after all of the negotiations take place and you are informed of how long you will be making this monthly payment. If there is any part of your monthly repayment schedule that you are uncomfortable with you should discuss that with your consolidation company immediately.
There are several benefits to choosing and completing a payday loan consolidation program. First, it reduces stress because you are turning the situation over to professionals. Next, it will reduce the number of harassing phone calls, letters, and/or emails demanding payment.
Lastly, and definitely the most important it is a way to eliminate your payday loan debt once and for all. You will be able to rebuild your credit to what it was before you began accruing payday loan debt, and finally move on with your financial life.