Posts Tagged ‘consolidate payday loan debt’

Do Lenders Enjoy Clients With Too Much Payday Loan Debt?

Written by David Schmidt. Posted in Debt Collectors, Payday Loan Debt

Considering we have spoken so poorly about payday loan lenders, it is a good idea to clarify some of the truths and falsehoods about them. Our clients have spent many frustrating hours trying to deal with lenders who hassle and berate them with lies and illegal threats. However, how many people actually know payday loan lenders and why they do their job? It is easy to vilify them for their misdeeds, but perhaps it is also wise to consider their point of view as well. This can help us to cope with the problems that we have.

Nerve Wracking Payday Loan Debt

In reality, most payday loan lenders have a nerve wracking time just like anyone else. Many families who take out loans are in need of the money so that they can survive and pay for food and other necessities. However, many of the lenders are trying to make a living without worrying about people who borrow money and do not pay it back. After all, they are stressed out that payday loan debt will go unpaid.

As many debt holders will attest, this is absolutely no excuse for the harassment that they put people through on a pretty routine basis. There is no reason to call people up to tell them that they are going to jail and they will be sued. That is illegal, immoral, and just plain wrong.

However, perhaps if you understand why it is that these lenders do this, you will have an easier time coping with their abuse. After all, they are trying to do the best for their families as well sometimes.

Consolidate Payday Loan Debt

Now you know that many of the lenders are also in situations that allow them to act so rudely. It is no excuse, but you can understand why they are so willing to consolidate payday loan debt. Thankfully, they are worried about getting paid all of the money back so they are willing to take a fraction of the money from us in order to at least recuperate some of their losses.

Nonetheless, when they are asking for 300-1000% returns on their small investment, that is altogether too big. However, the lack of repayment causes the free market to determine the rates of interest on these loans. In order for many of the lenders to break even or be able to pay the bills, they must charge high interest rates to cover the people who never pay back the money at all.

A Sad Industry

consolidate payday loan debtOverall, the payday loan debt industry is a sad one. At every step of the way there is some questionable morality and incentive to do things that most civil people would never do. It is unfortunate that so much is riding on payment of those loans, but the fight between lenders and borrowers is one that could leave the loser without food.

Hopefully with time the industry will change for the better. Restrictions will someday allow lenders to make the money that they need without hassling the borrowers. In the meantime, hopefully this article has given you an idea of what it is like to be a money lender. This will give you an easier time or insight to understanding  their harassment.

Credit Card and Payday Loan Debt

Written by David Schmidt. Posted in Payday Loan Debt

Payday loans are at an all-time high because of the economic crisis that has hit the world. Cheap credit is no longer an option for many people, which is why payday loans are becoming so popular. Nonetheless, there are alternative options to payday loans. Credit card debt is certainly not a positive thing, but when compared to payday loans, it might not be so bad. Here is a short rundown of why credit card debt may be a better alternative for you than getting further in payday loan debt.

Annualized Percentage Rate for Payday Loan Debt

The average annualized percentage rate (APR) for payday loan debt is upwards of 390-780%. When you need money to feed your family, this doesn’t really matter. It is totally understandable that you would want to spend the extra money in order to feed and clothe your family.

Nonetheless, the APR rate for credit cards is far lower. On average credit card companies charge 7-26% due to a number of legal restrictions. The difference between credit cards and payday loan debt is immense. There may be limits on credit cards, but that is certainly a better option than payday loan debt.

Default Rates with Payday Loan Debt

The difference in default rates between payday loans and credit cards is also large. If you cannot pay dues because you are late paying another creditor, then the universal default APR rage applies to credit cards. That means that they cannot charge more than a specific percentage if you are late.

However, if you have not yet consolidated payday loans, then you are not subject to these default rates. You could be forced to still pay hundreds of percentage points in interest.

Other Problems if you Don’t Consolidate Payday Loans

If you do not consolidate payday loans then there are a number of other problems that are far worse than credit cards. With credit cards there is a way to improve your credit by paying off your loans. No such thing exists with payday loans. Your credit rating will be unaffected even if you work diligently to get payday loan debt help.

Choose What is Best for You

Some people just don’t want to deal with the hassles and legalities that come with credit cards. If you would prefer to get a smaller amount of money from a local payday loan lender, that is your prerogative. Nonetheless, you should be aware that your life could be made a lot more difficult because it is so under regulated.

If you already need payday loan debt help, please let us know so that we can help you extricate yourself from the situation as soon as possible. We will walk you through our steps to get you out of debt. When you are debt free, however, make sure that you do not fall into the same traps. Use credit cards rather than payday loans if you absolutely have to incur debt in order to feed your family. We’re here to help you!

Avoiding Payday Loan Debt

Written by David Schmidt. Posted in Payday Loan Debt

We often advocate that our customers consolidate payday loan debt and begin the long arduous process of becoming debt free. But what do we do when we are finally finished paying off that debt? How can we make sure we do not fall into the same habits and mistakes that we made before? These are hard questions to answer, but we hope to offer a bit of guidance. Payday loan consolidation is difficult enough, but making your way back into the debt free world can be a challenge.

Know Payday Loan Laws

Knowledge is power when you are facing predatory money lenders. If you make sure to research the laws that protect you and your family, then you can avoid some of the pitfalls that previously plagued you. Many laws in your region may actually work in favor of the money lenders simply because they have a much larger lobbying presence than you do. If you are not aware of your rights and the legal loopholes that they can exploit, then you will find yourself back into debt and struggling to consolidate once more. Going through payday loan debt once is enough – twice is too much!

Keep Track of Your Finances

In some cases the only reason payday loan debt accumulates is because you lack the understanding of your own finances. We have all been there. Every month it seems like plenty of money is entering the bank account, but somehow it never seems to be adequate enough.

In order to rectify the situation you must take a look at credit card statements, bank account information, and your bills in order to determine where the money is being siphoned. Perhaps you recognize that your kids borrow too much money for movies and snacks. Maybe your night out with the boys is costing too much. The only way to get your finances on track is to be knowledgeable about where money is coming and going.

Tightening the Belt to Avoid Payday Loan Debt

Once you determine where the debt is coming from, you can eradicate it with a few steps. It isn’t hard to determine where you can save money when the facts are staring at you in the face. After you determine how to save money and maintain a surplus of money you can avoid payday loan debt completely.

For many people, debt collects in numerous ways. As evidenced by the recent financial meltdown, many unqualified people “owned” their homes. In reality, these people paid expensive mortgages every month, which eradicated much of their monthly income. Without money to spend on food and other family items, families increasingly turned to predatory payday loan lenders. It may be hard to stomach, but rental properties will help you avoid this. Find a property that you can rent for well below your monthly earnings. Live within your means for a while and you will not get caught in the cycle of debt.

Follow these simple steps and you will hopefully have a much easier time avoiding payday loan debt the second time. You’ve experienced it once and there is no reason to do it again!

Use some of these great tips from Jerrie Guthrey to remain debt free:

How to Consolidate Payday Loans

Written by David Schmidt. Posted in Payday Loan Debt

If you cannot meet your payments on the day that your payday loans are due you can try to consolidate your payday loan debts. This will help you to pay off your loans much faster. It will also help you from having to write several checks to the lenders each month and keeping track of who you owe and how much you owe. There are several benefits of consolidating your payday loans as well.  Here are a few professional ways or methods on how to do this easily.

Ways you can do this is to:

  1. Calculate the amount of debt: This method  is the simplest and easiest; all you have to do is to write down the balance of your loans and other debts that are unsecured. Making this list will help you get an overall picture of where you’re total debts are at.
  2. Approach a legitimate payday loan consolidation company: Contacting this type of company will assist in you in getting information on precisely how to get your loans set up in a one lump sum payment. This kind of company will offer you one or several programs about regarding debt counseling, that will address your unique financial problems. Your current financial situation will be analyzed by a debt counselor and they will give you advice if you need the program of debt consolidation or settlement.  
  3. Negotiate lower rates: this method  requires the work of a  consolidation company who will negotiate with your lenders for you in order to pay off your balance including interest from your payday loans. This will assure you that the principal loan along with interest will be paid off. Also there is a chance that your fees that are usually late in the payment will be eliminated or cut down.
  4. New plans for payment:  The consolidator will make some arrangements or negotiations for repayment with your lenders. The company will also work with you to determine the maximum payment that you can afford to pay off your payday loans. The real purpose of this method  is to work out an appropriate plan for your loans, so that you can continue paying your debts and get out of the payday loan debt faster. 

It will be your choice if what will be the most effective one for you. But surely all of these ways will be very beneficial.  First it can reduce and stop the interest. Second you can eliminate and reduce late fees. Third it can free you from payday loan debt faster. Lastly it can improve your credibility as a debtor because having defaults, late payments and accounts of charge off have negative impression on your credit score.

Paying your loans day by day is very hard to deal with, and there will be some instances where you cannot meet your payments every month. That’s why it is recommended to look at all the different ways regarding how to consolidate payday loans and get out of debt fast. Having this type of program, you will worry no more about your financial problems. This is how our service has helped so many people put money back in their pockets to pay real bills that they are having a hard time paying now. We are very proud to help so many and we can help you too!  You can truly consolidate your payday loan debts now and get out of this trap.


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