This Article is About
payday loan
payday loan consolidation
debt consolidation program
viscous cycle
loan cycle
consolidation company
financial emergency
repayment plan
financial obligations
paycheck
debts
loans
money
Help With Payday Loan Debts - What To Do?
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Help With Payday Loan Debts  -  What To Do?

Like many people you may have thought it was a good idea to get a payday loan to handle that unforeseen financial emergency needed a few weeks ago, but now you’re wondering what you’re going to do to get rid of this new debt.

The problem is, these debts can build up very fast and get out of control before you realize it’s even happening.

Why Payday Loan Debts Are a Problem

Even though people intend to repay the loan back within the time provided, so many people end up struggling to repay the loan.

In most cases people need the money from their next paycheck for other bills and financial obligations – the same paycheck which is supposed to cover this payday loan debt.

And because they cannot repay the loan, they re-loan, also known a rolling the loan over. So if you took out a $500 loan and there was a $20 fee as well. That means that a $500 debt and $20 fee may become a $520 debt and an additional $20 fee the next time. Not to mention the fee you need to pay to rollover the loan for another two weeks.

Then, a few weeks later when the debt is due you may find yourself unable to pay the debt off. So what do you do? You roll the loan over again. And this can go on and on until you find yourself unable to repay the debt at all.

And now you’re caught in what is called the payday loan cycle or payday loan trap - you go from making a pretty affordable payment to having to deal with a very costly debt that can keeps growing and growing.

Finding Help

The good news is there is help available. Most people can use payday loan debt consolidation program to help them to get out of this viscous cycle. This method allows you to lump all of your payday loan debts into one very low monthly payment.

Basically the payday loan consolidation company will take over your debt – then re-negotiate a repayment plan with all of your lenders for just the money you owe.

Doing this also stops all the interest and fees attached to the loans. Once this has been agreed upon you will then make one payment to the consolidation company and then the consolidation company will pay your lenders.

Depending on your situation this consolidation repayment plan will be spread over 6, 12 or 16 months.

So if you have found yourself caught in the payday loan trap - there is a way out. And once out the trick is not to get caught up in it again.


Street Talk

  

Personally you can blame the knuckleheads that put the economy in the toilet in the first place - people are struggling and these predatory lenders are getting fat off the pain and struggle of others - it's not right!!

Reply
  about 7 years ago

Hi Leo, We have to find a way to manage loans and mortgages.

Reply
  about 7 years ago
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