Welcome to Payday Loan Debt Helpers
Providing Debt Consolidation Assistance
Advantages of Payday Loan Consolidation
Every person may come to a moment in life when he experiences the stress of being in need of money. Having unpaid debts and lacking the necessary amount to cover them could be emotionally exhausting and could cost you not only losing your property but also lose your family. What can you do if you are struggling with overwhelming debt? How can you deal with those expensive medical bills? What about that high credit card balance, or mortgage? How can you return to a balanced and joyful life with your family with no more sleepless nights and uncertainties about the future?
There are various alternatives to get out of debt. Perhaps the easiest and fastest among them is payday loan consolidation. If you are going through a situation where you are unable to repay your debts, you can choose to take a loan to consolidate the older ones. This kind of payday consolidation loans can be very helpful. Of course there are some things about payday loan consolidation that you should keep in mind. Payday Loan Debt Helpers are going to stress them for you. We are going to explain how pay day loan consolidation works. We are also going to advise you on how to choose the best payday consolidation loan provider. The team at Payday Loan Debt Helpers will share insights on alternatives, advantages and disadvantages of payday loan consolidation and what you should keep in mind as a loan borrower. Hopefully, you can see the advantages of choosing us as your reputable, honest and helpful payday loan consolidation lender.
How payday loan consolidation works
Payday debt consolidation loan is a financial instrument that people use to repay their current debts. To achieve the repayment, borrowers use the new loan to combine their existing debts into one single debt. The new consolidation loan comes with a new interest rate. So both the number of your bills and total amount of interest that you pay eventually are reduced.
Usually, payday consolidation loans are not secured. This means Payday Loan Debt Helpers are ready to give you the loan based on trust without requiring any collateral from you. On the other hand, it isn’t completely uncommon for customers to be offered to take out a secured consolidation loan. A secured loan means that you will guarantee it with your property – something valuable enough that you personally own. This may be a house or a car. Depending on the amount of the loan, the loan lender may settle for smaller possessions, or insurance policies that you have. If your original debt is unsecured, you will most likely be offered an unsecured consolidation loan. If the debt is secured, the consolidation loan would also be secured. The latter usually comes with lower interest rates. So, to consolidate all your debt into one monthly payment with a lower interest rate, you should consider taking out a consolidation loan and let Payday Loan Debt Helpers make your life much easier.
How to choose a reliable payday loan consolidation company?
Let us guide you through the process of finding an honest and reputable payday debt consolidation company. Imagine seeing an advertisement of a company promising fast repayment of all of your debt. You’d say to yourself that this is impossible because you have tried over and over again to achieve this by yourself. But then again why not give it a shot? After all, this may be just the right thing for you to get yourself out of a debt crisis. We in Payday Loan Debt Helpers want to help you and we know the right way to do so. However, bear in mind that payday debt consoldiation may not be as easy as it sounds and there are too many companies out there on the loan market. So you should do your own research to find an honest and trustworthy loan lender.
Remember that there are many kinds of loan lenders who call themselves financial institutions. The typical kind of loan providers is specialized lenders or payday loan debt consolidation providers. The main thing about them is that they don’t deal with deposits but directly repay their clients’ debts and then collect their amount from them using monthly fees based on a new interest rate around the prime rate plus five percent. You don’t need to have a perfect credit past, so don’t worry. Bear in mind that there may be a limit on the loan amount you can possibily get.
The most traditional debt consolidation loan providers are the banks. They have one big advantage and one greater disadvantage – you may get a higher limit for your loan amount, and you should have an excellent credit score. The interest rates could also be quite high.
Credit unions also offer consolidation loans. They are useful to you only if you are a member as you may get a discount if you have a good credit past.
There are also payday lenders. They deal with debt consolidation a little bit differently from the abovementioned. Payday lenders provide unsecured short-term loans and they don’t do any credit checks. They aren’t going to repay the existing debts one by one. They will give the cash to you instead and the actual repayment is up to you. Their trust comes with a higher interest rate which is above 15%. And because the credit is short-term, the repayment is due in just a few weeks. The loan amount depends on the amount of your monthly income.
Other providers are peer-to-peer lending services which specialize in lending unsecured payday loans to individual customers. However, their interest rates may exceed 30%. Repayment is expected in the next 3 to 5 years.
Finally, there are personal lines of credit offered by banks and credit unions. To be approved of a personal line of credit, you should have an excellent credit past. Otherwise, their terms are similar to the terms of the loans they usually provide in terms of interest rates and amount limits. The difference is that they don’t expect repayment during the next 5 years.
Alternatives to a debt consolidation loan
Well, only if you are able to “borrow from yourself”. This means that you choose one of these two options – 401k loans or cash value life insurance policy. The first one depends on whether you have a 401k plan and on the terms of your plan. If they let you do so, you may be able to get a loan up to a certain limit and depending on your vested balance. You should be able to repay within 5 years but you don’t have to go through a credit check. However, if you lose your job or leave it, you would have to repay everything within two months.
As for the life insurance policy option, that depends on the terms with your insurer. So check them before making this choice.
When to take out a payday debt consolidation loan?
Before taking the step to consolidate payday loans, consider the advantages and disadvantages concerning these loans.
Do you want to simplify your debt repayment schedule? Would you like to lower the amount of the interest rate? Is regaining some of your former credit reputation your goal? Then debt consolidation loan is the right thing for you. However, you should not cancel all your credit cards at once immediately after repaying your debts as this could lead to damages on your credit dossier.
If you would like to borrow an unsecured loan, then you should note the following: First, there are no guarantees required, so no worries about losing your property in case you are unable to repay on time. Of course, the lack of guarantees means a higher interest rate depending to your credit past. Also, the loan amount depends on your credit score – better the score, higher the limit.
If you would like to borrow a secured loan, then it will be cheaper. If the lender gets a collateral, you would get a lower interest rate. He will also consider your credit past. The repayment period is much longer and the amount limit of the loan is much higher.
Nevertheless, remember that when you secure the loan with your property, you may lose it if you are unable to repay. And keep in mind that you could get fired from your job or have unexpected hefty medical bills to pay.
The team at Payday Loan Debt Helpers would like to remind you that before taking out a payday debt consolidation loan, you should always check the reputation and credibility of your prospective loan provider. If you have doubts, choose another payday loan consolidation company to work with. Look for an honest and trustworthy company such as ours. Remember that the benefit of debt consolidation loans is that they make it possible to repay debts with unmanageable interest rates. By taking out a payday consolidation loan, you can combine them into one monthly repayment amount which is more manageable. Always be careful when dealing with financial institutions. Keep in mind your own income and don’t exceed your repayment capability. Look out for potential dangers as losing properties such as a house, car in case you intend to use them as collateral. Choose wisely what assets to use, think about the maximum amount of the loan based on how much money you need right now and how much you would be able to repay later.