Yearly Archives: 2019


Using Debt Consolidation To Solve Your Payday Loan Problems

The payday loan industry is booming. In fact, there are over 20,000 payday lenders in the United States. People get payday loans because they are a lot easier to get than traditional loans. A steady source of income and a bank account are the only things that most lenders require to approve you for a payday loan.

Payday loans can make things convenient for you if you need to get funds quickly. However, many people are in debt because of payday loans. If you are struggling to pay off payday loans, then you need debt consolidation.

One Payment

Your life will be a lot easier if you only have to make one payment every month. You will not have to worry about trying to decide which loan you can pay off first. you make one payment to the debt consolidation company and they disperse the money to your payday lender at a 0 interest percent rate. (In most cases)

Save Money

In many cases, people are able to save money by using debt consolidation. The single payment that you make towards debt consolidation may be less than all of your monthly payments combined.

Stress Reduction

Debt is a major source of stress for people. Some people stay up at night thinking about all of the debts that they have to pay. Debt consolidation helps reduce your stress because you only have to make one payment every month. You can spend your time focusing on other things instead of your debts.

Stop Collection Calls

Payday lenders will turn your account over to a collection agency after it has not been paid for a certain amount of time. The endless collection calls are one of the many things that make being in debt very stressful. When you start a consolidation program and start paying off your debt the collection calls will stop.

Why you need to consolidate your payday loans now!!

KATHY KRANIGER….That is a name that Payday Loan borrowers won’t soon forget…Appointed by Donald Trump to replace Mick Mulvaney, interim director of the Consumer Financial Protection Bureau, she was narrowly confirmed by the senate in a 50 to 49 vote.

Before her nomination, she was pretty much an unknown in DC. She last served as associate director at the Office of Management and Budget, controlling a quarter-billion-dollar budget inclusive of seven cabinet departments including the Department of Justice. She has no formal experience in Consumer Financial Protection.

The CFPB was formed in 2011. Its mission was to protect consumers who were taking on any new financial obligations including but not limited to loans, mortgages credit cards, and Payday Loans.

Kraniger is the new permanent director, taking over the job from interim Director Mick Mulvaney. Mulvaney was a Trump appointee. The CFPB has always been an agency with problems and these problems became clear and controversial during the Trump, Mulvaney era.

Upon his appointment Mulvaney called the CFPB a “sick sad joke” and sweeping changes ensued. One of Mulvaney’s reforms was to relax restrictions on payday lenders. Many people feel that Kraniger as a Trump appointee will continue the agenda of Mick Mulvaney opening the doors for the Payday Loan industry to continue charging exorbitant interest rates, penalties, and fees.

In 2014, the CFPB determined that approximately fifty percent of all Payday Loans end up becoming ten loans long, constantly rolling over at the Borrowers expense.

Democrats fear this practice will continue under the Leadership of Kathy Kraniger.

Will I Save By Consolidating My Payday Loans?

Will you save money by consolidating your payday loans? That depends on your current payday loan debt as well as the consolidation options available to you. Let’s take a look at whether consolidating your payday loans can help you save money.

How Much Do You Owe?

It doesn’t matter what you owe. In most cases, a payday loan consolidation program will lower your interest rate down to 0%. You’ll be paying principal as opposed to interest. You’ll get out of debt quicker and as long as you make your payments on time you will not be harassed.

What Are Your Consolidation Options?
Whatever you do, do not take a loan against secured property to pay off your payday loans. In many states, your home is protected from any and all creditors. There’s no reason to risk the roof over your head to pay off a creditor. The best payday loan consolidation option is a debt management plan which would lower your interest rate in most cases to 0% or possibly result in part of your balance being forgiven.

Some Options May Not Be Available to You

It is important to point out that some consolidation options may not be available to you. This is because most people who opt for payday loans have poor credit. The best way to go is a credit counseling payday loan consolidation plan. Hey, work!

In extreme cases, bankruptcy may be your only option. However, this may be a good thing because your payday loan debt may be fully discharged in a matter of weeks. Although your credit will take a hit, you don’t have to worry about paying off your payday loan debt.

Will you save by consolidating payday loans? The answer is a resounding yes! There are very few situations where a Payday loan consolidation program can’t help you. More than likely you’ll be debt-free within a year and ready to move on with your life.

Payday Loan Interest Rates: Why You Should Consolidate

For most people taking out a payday loan is done in an emergency . You might have a car needing repair and you do not have the money. You might have an appliance that is broken and needs immediate replacement. Payday loan providers normally give out loans to anyone, regardless of their credit status. While this might seem like a great loan for people who have been denied by banks, payday loan providers protect themselves by charging very high-interest rates.

The interest rates attached to a payday loan can run up to 700% per year. Many can’t afford it. If you have one payday loan, it can be difficult to deal with, if you have two or more payday loans at the same time you more than likely have to default on them. it is very difficult to pay principal and interest at that type rate. Because of high payday loan interest rates, consolidation might be your best option. Consolidating a loan simply means that its payments are going to be less each time you pay the loan back. In general, the interest rate reduces to zero consequently it will be easier to afford each week’s payment.

Because payday loan payments can be incredibly demanding, consolidating your current loans is going to save you from financial ruin. The problem with payday loans is that their interest rates are so high that it is difficult for most people to pay them off. Take into consideration the fact that you might have poor credit or no credit at all, and the nonpayment of these loans can have a devastating effect on you and your loved ones. Your credit score can go lower and lower when you are struggling to pay off payday loans.

Consolidating these loans is the best option if you’ve been noticing that the payments are too much for you to afford comfortably. The key to getting a payday loan is to have quick cash in your hand for emergency situations, and then to pay off the loan just as quickly as you can. Consolidating these loans allows you to have more time to pay off the loan while also making its payments a lot easier for your budget. If you currently have one or more payday loans that need to be paid off, you might want to consider the benefits that come with loan consolidation. In most cases interest reduction down to 0%.