It’s true that in this age of economic meltdown and post recession hangover pay day loans or cash advance are the easiest way to obtain cash. However, though pay day loan is an easy fix, in the long run it can turn into a debt menace of high interest rates and endless borrowing. Before we get into the detail of managing pay day loans and payday loan consolidation, one need to understand under what circumstances people even get to the point of wondering questions like “How can get rid of my multiple pay day loan debts?’’
Millions of debt-stricken Americans take out pay day loans during urgent financial requirement. In their desperate attempts to get some cash, they often miss the point that they have to pay back the loan combined with its interest within two weeks. When the time of repayment arrives, left with no other option, they take out another pay day loan and reimburse the previous one. However, this is not the end of it, the cycle continues further and after rolling back their balance a couple of times they stop borrowing loans as they simply cant afford any more pay day loans. Then, what happens next? Consumers stop contacting the lenders and start ignoring the debts, in the hope that it will go away soon.
If you are in the same situation and now feeling sick and tired of your multiple pay day loan debts, pay day loan consolidation could help you out. With consolidation, you can club the loans into one lump sum and can negotiate with the pay day lending companies to settle for a lesser rate or charge. Want detail read ahead.
Usually a pay day loan comes with a high interest rate, so if you can consolidate your multiple pay day loans with a secured personal loan or a home equity loan or O% introductory rate credit card, which involves a much lower rate of interest you can not only reduce your interest rate, but also can trim down the monthly payments considerably.
A Debt Management Plan
If you enroll in a debt management plan, the debt management company usually gears towards reducing the amount of your debt. A debt management advisor negotiates with the payday loan lenders on your behalf and convinces them to reduce your interest and waive the penalties and extra charges from your account. As debt consolidation agencies are well aware of the rate structures, their smooth tongue arbitrators are more likely to convince the lenders to reduce the debts payable. They can help you pay off the payday loan in small affordable installments in a specific time frame without incurring much extra costs. With a DMP advisor working for you, you can remain tension free as you only need to make a single payment to the debt management company, which will further disburse the amount among the other creditors.
Follow the aforementioned points and maintain a disciplined and self controlled lifestyle to get rid of your pay day loan debts.