Increase Your Financial Stability with Payday Loan Debt Relief
Finding yourself saddled with debt from payday loans may feel like an endless cycle of payments and mounting penalty fees. No matter how many efforts are made to move forward, you never seem to get ahead.
Fortunately, there are strategies for those needing payday loan debt relief that can meet the needs of many consumers. Read on and learn more about the best methods to eliminate payday loan debt.
Payday Loans Can Ruin Your Long-Term Financial Wellness
The irony of payday loan debt is that most consumers apply for payday loans to avoid further financial problems. These risky moves are usually seen as short-term, temporary fixes for money troubles. If paid back in the allotted time, they fulfill your needs.
But, if the payoff deadline is missed, penalties, extra fees, and compounding interest rates can all come crashing down on an already unstable financial situation. Once a consumer finds themselves in a downward economic spiral, recovering without help is extremely difficult.
The effects of such missteps can be long-lasting and often cause as much emotional hardship as financial problems.
Payday Loans Can Cause a Vicious Debt Cycle
When consumers decide to pursue a payday loan, it’s usually because they have few other options. Offering consumers high-interest, stiff-penalty loans is a surefire recipe for disaster.
If these loans are defaulted on, the interest and penalties usually make the payback amounts so insurmountable that the average consumer cannot repay the loan. Lack of adequate payment moving forward means the cycle continues and the consumer spirals further.
Payday Loans Can Damage your Credit Score
Once a person finds themselves behind on loan repayment, their financial problems will only worsen. Besides feeling constantly strapped for cash, many options for relief become unobtainable.
A person’s credit score reflects their buying and repayment habits. A good credit score usually indicates that a person can purchase items on credit and repay the amount owed successfully. A favorable credit score, in turn, allows for greater flexibility in receiving credit cards, bank loans, or other legitimate forms of financial assistance.
Bad Credit Ripple Effect
When a person falls behind in paying off a loan or credit card, their credit score plummets. Once the credit score is diminished, it’s much harder to receive financial assistance. Banks and lending institutions are wary of lending to individuals with low credit scores.
Once overdue payday loan payments begin to erode a credit score, the consumer finds fewer options for escaping the financial hole. Often, it’s only risky payday loan companies that will even consider lending to a person with a bad credit score, another pitfall of dealing with payday loan companies.
Payday Loans Are Extremely Heavy on the Pocket
One of the most complex parts of payday loan repayments is the added fees which are exponentially piling up from missed or incomplete payments. Between interest rates (APR) above 500% and millions of Americans receiving payday loans each year, the payday loan industry is a machine for bilking consumers.
When calculating the cost of a payday loan, it’s essential to understand how one small slip can lead to numerous financial failures. Americans spend, on average, nearly $7 billion in extra fees for their loans. That’s no small amount!
The Long-Term Financial Implications of Falling Into a Debt Cycle
Most customers who need financial help or a quick cash infusion aren’t usually in a great place, moneywise. Payday lenders recognize this problem and make it part of their lending strategy. Most are counting on the likelihood of consumers not paying back on time and the inevitable additional charges they’ll be able to receive.
Once in this trap, consumers are faced with more and more fees, making paying off the debt nearly impossible.
Additionally, credit scores slump and create further financial opportunities, which could alleviate the problem of increasingly difficult to acquire.
Consumers spend more on paying off the loan than the original amount borrowed. They’re likely to be in a much worse financial situation than when they started.
Staying stuck in a payday loan debt cycle continues to wear on consumers financially, emotionally, and healthwise. Monetary concerns are terrible for stress levels, which are, in turn, terrible for our health. Imagine developing an illness or needing a hospital stay on top of existing severe financial concerns. Sounds like a recipe for disaster.
Is Payday Loan Consolidation a Safe Option?
When faced with insurmountable financial odds, it is best to consider trusted and experienced help. Being able to ask questions, look for advice, or simply receive reassurance about moving forward are substantial building blocks for constructing a solid financial future.
With loan consolidation, consumers can see a path to rebuild and repair their money situations. They find themselves using a reliable method to improve their lives and finally resolve their debt.
Payday Loan Consolidation Helps With Long-Term Financial Stability
Consumers who choose payday loan consolidation can bundle all of their debt into one reasonable monthly payment. Once the loans and debt are paid off, consumers will see their buying potential improve dramatically. Successfully paying back debt through consolidation is a significant financial responsibility exercise.
In addition, many consumers learn how better to manage their money through the debt consolidation process. Having to manage payments and stay on track will teach some monetary responsibility.
Understanding that they can apply the same principles to consumer spending and normal aspects of daily life will further their abilities to remain successful consumers free of debt. Finding oneself in debt is never a good place, but there are possibilities for learning and growing in any situation.
Payday Loan Consolidation Protects Your Credit Score
Payday loan debt can accumulate quickly, especially considering the potential for astronomical interest rates. When the debt becomes too much, and a consumer isn’t paying off their ever-increasing amount, their credit scores or ratings are likely to suffer.
The good news is that paying off debt through consolidation services can help rebuild a person’s credit rating. Making regular payments and erasing debt amounts shows the credit industry that an individual is a safe bet to extend credit to.
Enjoy Lower Fees
Debt consolidation works to keep as much extra money in the consumer’s pockets as possible. When a consumer struggles to pay back a loan or some other debt, they are often overwhelmed by all of the late charges, additional compounding interest rates, or other penalties for not completely fulfilling the payment agreement.
Consolidation means putting all the current debt into one reasonable payment. Fewer options for falling behind mean fewer chances of paying additional fees. By consolidating debt into one payment, there is far less chance of missing or overlooking the monthly installment.
Benefit From an Extended Payment Period
Many payday loan lenders realize that giving a financially vulnerable customer two weeks to repay a loan means they’ll have a greater chance of failure. This often means the payment rolls over, attaches additional fees and interest, waits for the consumer to default again, and continues the whole process, over and over.
With payday loan debt relief, consumers are given a reasonable timeframe and payment schedule for fulfilling the consolidation terms. Consumers aren’t being crushed monthly by bills and can breathe a bit easier.
How Do I Get Help With Payday Loan Consolidation?
Deciding to take control of your financial future is one of the wisest steps a consumer can take. Throwing money at payments that never satisfy the principal amount is a waste of time and resources. Make the process mean something by successfully consolidating and paying off debt.
The first step towards proper consolidation requires finding a reputable and trusted company for handling debt reduction. At Real PDL Help, our primary focus is on helping customers resolve debt issues, whether from payday loans or otherwise.
We offer a free consultation to identify the debt a customer currently holds. This meeting helps determine a strategy for the consumer and the debt consolidation team.
Next, we negotiate repayment terms with the customer’s payday loan companies they owe. By dealing with these companies, the customer can receive relief from collection agency calls and keep them from attempting to withdraw additional payments from their bank accounts. This can also pause the overdraft charges coming from the bank.
From there, the customer is set up with a reasonable monthly payment plan to which they can adhere.
Additionally, our professional staff will be available to answer questions and offer support through the completion of the consolidation process.
Real PDL Help is committed to finding real solutions to many customer situations. Offering viable solutions is our strong suit. Contact us today to see how a successful plan can change your life.