Are you stuck in a vicious cycle with payday loans that never seem to end? We know this can be a stressful situation that seems as if there may be no solution. However, don’t count yourself out yet. There are ways to end the cycle and break the chains that payday loans have you in. We've compiled a list of the ways that a consolidation loan might help you bring some control back to your life.
Drop Multiple Payments
When you start the process of debt consolidation, what happens when you take out a single loan that pays off your other accounts. So, for someone with multiple payday loans, these payday loans will all be combined into a single loan. This allows you to avoid the worries that come from having multiple payments required at various times during the month. Instead, you have a one-time monthly payment that will apply to the debt as a whole. There’s no stress about prioritizing one account over another, as there is now only a single account to worry about. In addition, many times this leads to a smaller payment which is easier to budget for.
Reduce Your Stress
Once you have consolidated your loans, it’s likely that your stress level will plummet. Debt is, without a doubt, one of the most stressful things that humans must deal with. A debt consolidation loan drops a lot of the pressure from you because you now only have a single loan to take care of, instead of multiple accounts. You may find that you’re able to focus better on other things in life which may have fallen by the wayside. You will have time and energy to live life, instead of spending every moment concerned about when the next payment is coming up.
Stop Annoying Phone Calls
An added bonus to consolidating your payday loans is that it will stop the insistent phone calls from payday loan companies. It’s easy to get behind with a payday loan, which can sometimes lead to your loan being picked up by a collection agency. These agencies, and payday loan companies themselves may call you multiple times a day to convince you to pay them money. Once you consolidate your payday loans, you can once again pick up your phone without worry. Those calls will stop because you will have paid off the loans in exchange for a single monthly payment.
Take Control of Your Bank Account
Many payday loan companies take advantage of you and your bank account by pulling payments directly from your funds. This can be stressful and frustrating, as you may feel that your account is no longer your own. With a debt consolidation loan, this feeling will dissipate because you will once again have control of your bank account and finances. This can go a long way toward feeling better about yourself and your privacy.
Stop the Payday Loan Cycle
A common occurrence when it comes to payday loans is the “payday loan cycle.” This means that someone who has a payday loan may end up in a situation where they need another payday loan just to pay the payment on the first one. This can continue until a number of loans are all due, something that is anxiety provoking for even the best of us. By consolidating your payday loans, this is something you no longer have to be a part of. You simply pay that one payment a month and the rest of your money is available for your other bills and household needs.
Enjoy a Lower Interest Rate
By choosing a payday loan consolidation company, such as the one offered by Real PDL Help, you’ll often end up saving money on interest charges. If you have many payday loans, you know these interest charges add up quickly. By consolidating, you’ll get a more reasonable interest rate which saves you money in the long run. This will cut the payments and make it easier to pay off that consolidation so you can move on with your life.
Decrease Late Fees
For those who have multiple payday loans, it can be hard to keep up with every one of them. If one falls by the wayside, you end up with late fees and become even more indebted to the company offering the loan. When you consolidate, on the other hand, those unstructured payments will end. You will have a single payment that will occur each month, making it much easier to budget and prepare for it each time it comes around.
Establish a Budget
Some payday loan consolidation companies will sit with you and help you work out a budget. Real PDL Help offers this to all their consolidation clients. The skilled professionals working for the company will help you determine what you can afford based on your income and how much you can spend on the consolidation each month to get you out of debt as quickly as possible. And once that’s done, you can go back to a life that is far less stressful.
Improve Your Credit Score
Many people don’t think about this, but consolidating your debt can improve your credit score. If you are making late payments to companies that alert the credit bureaus, this can hurt your credit score to a substantial degree. By consolidating, you’ll be better able to keep on top of payments, which will lead to the ability to rebuild your credit score.
Payday loans can sneak up on you and leave you feeling like you have no way to get out from under them. Fortunately, there are ways to end this cycle and change your finances for the better. At Real PDL Help, you can get a free consultation from experts who understand the process inside and out. If you want a way out of payday loan debt, get in touch and let someone support you through the process.