Payday Loan Consolidations in Northeast USA
For residents of northeastern states including Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont, one reasonable method for relieving payday loan stress is through a consolidation.
When consumers are faced with unexpected expenses and financial burdens, a payday loan seems like the perfect solution. These types of unsecured loans are an easy and quick way to get immediate access to funds when you are facing a financial dilemma. However, many consumers learn the hard way that payday loans are too good to be true, and are left with a hefty repayment schedule, extremely high finance charges, short due dates, and large late fees.
Payday loans are usually due 1-2 weeks after they are given, which is generally when you receive your next paycheck. If you do not pay off the balance of your loan at that time, it is carried forward at a high interest rate. Most consumers find they are unable to pay off their balance and receive a second payday loan to pay off the first. They enter into a continuous cycle of debt, making it impossible to keep up with timely payments and fees.
Debt Statistics in the Northeast
In 2020, the average national debt balance among consumers was $92,727. Although this is just up 0.3% from the previous year, it is still the highest level since it peaked in 2010 after the Great Recession. The upward trend is expected to continue, with mortgage, student, auto, and personal loans all on the rise. In the Northeast, over half of the states BSI service have debt balances above the national average, but most have stabilized vs. the previous year. Please note as of this posting, 2020 is the most recent data available as reflected in the following.
| State | 2020 Consumer Debt (in thousands) | % Change vs. 2019 |
|---|---|---|
| Connecticut | $105.1 | -3.0% |
| Delaware | $98.8 | +0.7% |
| Maine | $77.5 | +3.0% |
| Maryland | $123.3 | -2.0% |
| Massachusetts | $115.7 | -0.9% |
| New Hampshire | $95.5 | -0.2% |
| New Jersey | $102.1 | -2.2% |
| New York | $84.3 | -2.4% |
| Pennsylvania | $77.5 | -1.0% |
| Rhode Island | $91.8 | -0.1% |
| Vermont | $83.3 | +0.4% |
Options in Northeastern States
Payday loan consolidation is a viable solution for individuals who have accumulated these sorts of unsecured short term debts. You can attempt to consolidate your payday loans on your own, or you can be represented by a payday loan consolidation company. If you choose the latter, you should find a reputable organization that has all the proper categorizations for your needs. It should be highly regarded and deemed legitimate, which is signified by some or all of the following: it has a BBB A+ rating and/or accreditation, has a national presence, is a properly defined non-profit organization, and has a track record for legitimate and well reviewed business in your state.
Consolidating Payday Loans Quickly
Once you have decided payday loan consolidation is the right option, and find a reputable organization that is properly licensed in the state in which you live, you’ll be ready to proceed with an experienced debt counselor.
The first step of the consultation will be to evaluate your financial situation, including reviewing all active loans. If you qualify, the debt counselor will prepare a debt relief program that is often presented as one new payment with new terms of repayment. Experienced companies will be able to consolidate payday loans that will eliminate any outstanding interest charges, penalties, and late payments. Under your new payment plan, you will only be responsible to make the new monthly payment which will be substantially lower and more manageable than before.
Why Consolidate?
Consolidation is one of the best solutions to payday loan debt. This type of unsecured debt is subject to extremely high annual interest rates (APR) and very short terms, often only 1-2 weeks. The consolidation company you select will help eliminate both of these financial burdens by lowering that APR and re-mapping the loan term so it is spread over a longer period of time. This will result in a single monthly payment that is greatly reduced. The benefits of consolidation are:
- Peace of Mind: A consolidation plan eliminates the need to remember to pay multiple bills each month.
- Lower Monthly Payment: Rather than pay multiple bills for high amounts, a consolidation plan lets you make one payment that you can afford.
- Eliminate Additional Fees: Consolidations usually stop all interest, penalties, and late fees.
- Flexible Terms: With payday loan debt consolidators, you will have more flexibility with repayment and not be bound to very short terms.
Payday Loan Consolidation Expectations
Most U.S. states support consolidation of payday loans, assuming this action is in the best financial interest of the consumer. In many cases, payday loan consolidation is the optimal solution that gives consumers the ability to get financial relief from unsecured debts. While it is important to understand that consolidation does not write off your debts, it does allow you to make an affordable payment at a lower interest rate, over a longer period of time. Through consolidation, you will likely be able to maintain good credit, lower your expenses, make timely payments, and gain peace of mind. By working with your lenders through a reputable consolidation company, both parties will benefit as opposed to getting stuck in a cycle of debt associated with such aggressive loan types.
Northeastern States that BSI Serves
BSI provides debt consolidation services to residents in Connecticut (CT), Delaware (DE), Maine (ME), Maryland (MD), Massachusetts (MA), New Hampshire (NH), New Jersey (NJ), New York (NY), Pennsylvania (PA), Rhode Island (RI), and Vermont (VT).
BSI also serves states in these regions: Southeast, Midwest, West.
Next Steps
If you reside in any of the states mentioned, and have accumulated debt from one or more payday loans, you are likely a candidate for a consolidation. If you are unable to repay the loans or if you are receiving phone calls or letters demanding payment, it may be the right time to schedule a free counseling session with a nationally recognized payday loan consolidation company like BSI. An experienced and reputable loan consolidation company can help you make your way back to financial health.