We have all heard of the saying, if it’s too good to be true, it usually is. For millions of Americans who need cash and fast, payday loans might seem like a great idea because they are a quick and easy way to get money… and sometimes they can be helpful as a short-term fix when you’re in a financial crunch.
However, borrowers often learn the hard way that it can also be the fastest way to get caught in an endless cycle of debt. If you are one of the many, don’t despair, there is a way to get the help and relief you need from payday loan debt.
Before looking at how to get relief from your payday loan debt, it is important to understand why payday loans can sometimes make financial matters worse, as tempting as they might seem.
The Disadvantages of Payday Loans
They are expensive. Payday loans come with high interest rates and fees. Since they need to be paid back over a short period of time, the interest keeps accumulating if you don’t have the funds to pay the initial loan back in time. As a result, many borrowers find themselves with debt that spirals out of control.
They are quick-fix to a bigger problem. Those seeking financial relief with a payday loan are likely struggling and not in a good place financially. While the inflow of cash might solve an immediate need, there will likely result in a worsened financial situation when they become due.
Payday lenders can be untrustworthy. Many are just looking to take advantage of those in desperate financial situations. Between the high interest rates, sometimes hidden fees, and short repayment terms, they are not exactly the best advocate for your financial success.
If you find yourself in need of relief from payday loan debt, there is a way out. There are several options available, including a viable solution know as payday loan consolidation. Through consolidation, a third-party company will take on your loans and the responsibility of repaying them, and in turn charge you a flat monthly payment at a considerably lower interest rate with a more reasonable repayment period. The new restructure and repayment plan can also put a stop to automatic withdrawals from your account, making your paycheck yours again. Here are some tips for getting started:
• Do your research. Look for consolidation companies and relief programs that are reputable. Companies that are highly-rated with the BBB and have positive reviews and testimonials should be considered.
• Set up a free consultation. Once you have found a reputable company, set up a free consultation and speak with a professional about your options. Based on your personal and financial situation, a representative will be able to guide you in the right direction and let you know if you qualify for a consolidation program.
• Take action. Many people will qualify for payday loan consolidation and can get started right away. After review and evaluation, the consolidation company will provide you with your new monthly payment along with your repayment terms.
Payday loan debt can leave many feeling hopeless. Payday loan consolidation is one of the most practical solutions to getting the relief you need and get you back on financial track. Take the first step by finding a reputable company to partner with and find a program that works for you.
Working with BSI to Relieve Payday Loan Stress
BSI is a BBB rated company with an A+ rating. We are a non-profit payday relief and loan consolidation company with national reach. We invite you to check for availability in your state then contact us for a free evaluation of your current payday loan debts and explanation of how you may benefit from our consolidation program.