When finding help with payday loan debt, it’s important that you choose the right payday loan consolidation company. Most of the payday loan consolidation companies will charge you with fees for a simple action that you could have taken yourself. Other companies, on the other hand, are affiliated with the same lending companies where you got the payday loan.
Before you look for an outside help with payday loan debt, make sure that you do your homework. Most loan consolation companies contact your lenders and negotiate with them to lower your interest rates while reducing your monthly payments. From there, they will take your money to pay off your debts while they take a cut of that money on the side.
It’s also ideal that you take action before your debt will go out of control. You must pay your debt with the highest interest rate. Then, make sure that you make a timely minimum payment on the rest. You should also calculate the total costs of your debt yourself, instead of relying on the quoted cost of the lending company. Never trust the company’s loan calculators until you can be sure what factors are included in the computation.
Look for a payday loan consolidation company that can work with you to sever your ties with your payday lender, instead of just digging you deeper into your debt. One of the things that they recommend is to withdraw the remaining money that you have from the bank account where your lender has access to. Afterward, close that account. However, you should check your state law first. Some states in the US considered it as a criminal offense, i.e. if your intention is to evade your lenders
If it’s legal to close your account, you can now proceed to close it and open a new bank account from a different bank. But make sure that the new bank will not demand on taking your old account and be transferred to the new one. Now, if lenders would contact you after they failed to withdraw money from your recently closed account, you could arrange to pay them through mail with your cashier’s check. Or you could just pay through money orders. Doing it this way would keep your loans on your own terms.
Asking help with your payday loans debt from a loan consolidation company can be an ideal choice. But make sure that you study the company’s features before signing up for its services.