Payday loans consolidation in Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin.

Consolidating Your Payday Loans in the Midwestern States

Payday loans are a quick way to get access to cash, but are also an entry into an endless cycle of debt. Consumers who find themselves in financial hardship, whether it be for a medical emergency, unexpected home repair, or many other countless cash-strapped situations, often turn to these types of unsecured loans for their convenience. However, the risk involved often outweighs the benefit of their accessibility and ease.

The negative connotations associated with payday loans include exorbitant interest rates, unrealistic repayment cycles, large late fees, and other penalties. With a payoff period that is typically only 1-2 weeks, consumers often find themselves in need of a second loan to pay off their original debt. It is then that they find themselves in the “payday loan trap,” making it very difficult to keep up with timely payments and fees.

Consumer Debt in the Midwest

Consumer debt is comprised of various types of liability including personal loans, credit cards, mortgages, auto loans, etc. In 2020, the total debt balance among consumers on a national level was $92,727. Although this is up just 0.3% from the previous year, personal loans trended slightly higher at 1.2%. Debt balances across the Midwest varied by state, with the percentage change year to year ranging from -1.4% in Illinois to +2.9% in South Dakota. The following depicts the most current annual data available: 2020 debt balances by state in the Midwest and their percentage change vs. the previous year.

State 2020 Consumer Debt (in thousands) % Change vs. 2019
Illinois $83.9 -1.4%
Indiana $71.8 +2.5%
Iowa $73.9 +1.3%
Michigan $70.3 +0.9%
Minnesota $96.8 +0.8%
Missouri $75.3 +1.6%
Nebraska $76.7 +1.8%
North Dakota $82.3 +0.6%
Ohio $68.8 +0.3%
South Dakota $82.1 +2.9%
Wisconsin $78.3 +1.9%

Consolidation as an Option in the Midwest

BSI serves the following midwestern states: Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin. Note that BSI also serves states in these regions: NortheastSoutheastWest.

For residents of these states, you can contact BSI to consolidate their payday loan debt. Consolidation is a viable solution that is designed to combine high-interest payday loans and other types of unsecured debt into a single loan with a lower interest rate. This will allow you to pay less each month and ultimately pay down your debt more quickly. Here are some of the other benefits of payday loan consolidation:

  • Eliminate Existing Fees: Consolidation usually halts all interest, penalties, and fees tied to the original unsecured debt.
  • Predictable, Lower Monthly Payment: Payday loan debt is consolidated into a consistent, single monthly payment at a reduced interest rate.
  • Flexible Repayment Terms: The new consolidated loan will be paid back over a longer period of time, making payments more manageable.
  • Financial Health and Peace of Mind: Consolidation will get you back on track financially, and eliminate the stress and worry of not being able to pay off accumulating debt.

How to Get Started

You can attempt to consolidate your payday loans on your own, or you can be represented by a payday loan consolidation company. If you decide to work with an organization, it is very important to find one that is reputable and fits your financial needs. Some of the questions you should ask about the payday loan consolidation company include: does it have an A+ BBB rating and/or accreditation? does it have positive reviews across various sources? how long has it been in business? are their business practices transparent? are they a non-profit and have a national presence? These are just some of the criteria for making sure you are partnering with a reputable organization.

Once you partner with a payday loan consolidation company, an experienced debt counselor will evaluate your financial situation, examining your current debt, income, and expenses among other things. A relief program will be designed to fit your needs, often presented as one new monthly payment with new terms of repayment. Experienced companies will be able to stop all interest charges, penalties, and late payments associated with the original debt. The new program will be more affordable and manageable, and get you back to financial health.

The Debt Consolidation Process

If you find yourself in substantial payday loan debt, you are likely a candidate for consolidation. Most U.S. states support the consumers ability to consolidate payday loans and other unsecured debts when it is in their best financial interest. Transferring your existing debt into a more manageable monthly payment with realistic repayment terms will enable you to maintain good credit, lower your expenses, and give you peace of mind among other positive things. If you are unable to pay your current loans and stuck in an endless cycle of debt, it may be the right time to contact a free counseling session with an experienced and reputable loan consolidation company.

States Where BSI Can Help

BSI can assist with consumer debt including payday loans in Illinois (IL), Indiana (IN), Iowa (IA), Michigan (MI), Minnesota (MN), Missouri (MO), Nebraska (NE), North Dakota (ND), Ohio (OH), South Dakota (SD), and Wisconsin (WI).