This article has been written for the people who have not yet been informed of how payday loans are significantly different from personal loans or a secured loan. A personal loan can be more difficult to get without collateral. Personal loans are dependent on your credit rating. You’re scored and put into a tier. The higher the tier the better the credit consequently the lower the interest.
The top tier is A….. Then B, then C running down to the lowest tier that any particular company has. These loans have an interest cap on them dependent upon the state in which they have been taken. There is no state that has a cap of more than 30% APR. Those with good credit might only pay 6 or 7%. That would be a good loan. Unfortunately, many people’s credit scores do not put them in a top-tier. Then there are collateralized loans. They are exactly what they sound like. You post collateral for the privilege of taking out a loan understanding if that loan defaults, your property belongs to the lender. Collateralized loans are automobile loans, Furniture loans and a loan against something that you are buying that is valuable. A top-tier credit score on an automobile loan could land you a car at 0% interest depending upon the promotion that any given manufacturer is running at any given time. The rates go up commensurate with your tier and eventually the interest rate caps off or you become un-lendable.
When you find yourself unable to qualify for either type loan mentioned above most people resort to Payday loans. Payday loans are different. The major difference between payday loans and the other two types of loans are that in some states payday loans can cap off at 700% annual interest. These are loans that many people are stuck with for years. They continually make interest-only payments and never get out of debt. That’s where payday loan consolidation comes in. A reputable payday loan consolidation company is able to have that interest rate reduced to 0%. In addition, when you have a 0% interest rate your payments are adjusted and you have a finite time to get out of debt. Payday loan debt consolidation is the only way to get out of that last resort loan you took.
Payday loan debt consolidation can stop harassing phone calls immediately. In addition besides stopping the phone calls and lowering the interest rates, payday loan consolidation will change your life for the better. Payday loan consolidation will get you out of debt.