How Payday Loan Consolidation Works
Payday loan consolidation is one of the only ways to get out of predatory payday loans, which can seem like an impossible trap. However, many people don’t know much about what payday loan consolidation is and how it works. Here’s a simple guide to help you know if payday loan consolidation is right for you.
What is Payday Loan Consolidation?
Payday loan consolidation is a form of debt consolidation that takes out one loan to pay off many high-interest loans. This type of consolidation is helpful because payday loans often have extremely high interest rates that can add up quickly.
How do you know when to consider Payday Loan Consolidation?
Payday loans are often exploitative in nature, being advertised as a quick fix to a money problem, when in reality they almost always lead to an even bigger money problem down the road. If you have taken out some payday loans, you may come to realize that you have taken out too many loans or that these loans are starting to become a problem in your financial life. If you fear that you may not be able to pay back your payday loans or that the interest is growing beyond what the loan is worth, then you might consider a payday loan consolidation.
How does it work?
If you choose to do your payday loan consolidation through Real PDL Help, you will go through three general steps:
- You will begin your payday loan consolidation by having a consultation with a financial professional. He or she can help you figure out your current financial standing and begin to guide you towards a customized financial plan. Be sure to bring all the necessary information to this meeting; contact information, lender’s information, and account balances.
- After this meeting, you will receive a personalized program that works the best for your budget. Please take the time to fully understand the terms of this program and any associated deadlines.
- After setting up a plan, take several actions to help ensure your financial freedom. This includes stopping pre-authorized payments from your payday lender, sending cease and desist orders to the payday loan company, stopping interest-only payments, and ceasing any communication with your lender.
Is it possible to achieve financial freedom after taking out payday loans?
Even though payday loans can be extremely difficult to escape, it is possible to achieve financial freedom. As long as you keep up on payments, pay any bills that you may be behind on, use the tools and resources provided to you through Real PDL Help, and keep in contact with your Real PDL Help professionals, you will eventually find yourself completely debt-free.
What resources are available to help me?
If you would like to learn more about payday loan relief and payday loan consolidation, visit our blog. You can also apply for a free consultation to help you know if payday loan consolidation is right for you.
Debt relief is possible, even if you have many payday loans or increasing interest on those loans. Through payday loan consolidation, you can combine many loans into one simple loan with one monthly payment. Financial freedom is priceless, learn more about how we can help!