For better or for worse, payday loans have become a main source of borrowing in the United States. Payday loans are quick and easy, offering fast approval with no credit check and loans for as low as $500 that are funded in minutes.
Sounds like a great solution when you’re in a short-term financial bind, right?
Unfortunately, payday loans can turn into your worst nightmare if they are not paid back in time, leaving many consumers in need of help with payday loans. Reputable third-party consolidation companies offering payday loan debt consolidation are available as a solution for consumers who fall victim into the infamous payday loan trap.
Why are Payday Loans So Risky?
Payday loans are very enticing as cash can be immediately transferred into your bank account. Borrowers who are faced with an unexpected emergency or other financial hardship often seek out these loans as a quick fix. Problems arise when the borrower is unable to pay back the full amount owed within the first payment cycle, which is usually a two-week term. With astronomical finance charges, above 300% on average, these payday loans end up becoming a continuous cycle of debt. Some payday lenders have direct access to your bank account and can get a hold of your income if you default on payments. If this all sounds pretty scary that’s because it is. For the millions of Americans who find themselves in what seems like a helpless situation, there are organizations that provide help consolidating payday loans.
How to Consolidate Payday Loans
The first step in making your way back to financial steadiness is to find a reputable company that can provide a debt consolidation loan for payday loans. Not all payday loan consolidation companies are created equal, so make sure to do your research and look for a company that has good reviews and is highly rated with the Better Business Bureau (BBB) among other things.
Once you partner with a reputable firm, your consultation will include a financial overview to determine how much you owe, your income, expenses, and other factors to determine if you qualify and if loan consolidation is the best option.
Once you are enrolled in a payday loan consolidation program you can expect the following:
Stop automatic payments: In most cases, ACH debits to payday lenders can be stopped.
Instant payday loan relief: Normally, payday loan payments and late fees owed to creditors will be halted and revised to a new single payment.
One low monthly payment: Multiple payday loans can be consolidated into one low monthly payment at a reduced rate and with realistic repayment terms.
If this all sounds really simple, that’s because it can be with the right payday loan debt consolidation partner. Consumers who fall victim to payday loan debt are often overwhelmed, scared, and sometimes ashamed to get help. Payday loan consolidation is often the best solution to what feels like a hopeless situation.
If you qualify to consolidate your payday loan debt into a repayment program, this action may be the best solution to get out of undesirable debt and on the path to financial freedom.
BSI is a BBB rated company with an A+ rating. We are a non-profit payday relief and loan consolidation company with a national reach. We invite you to contact us for a free evaluation of your current payday loan debts and learn how you may benefit from our consolidation program.