How does payday loan consolidation work?

Having problems with online and storefront pdls? If yes, then try to consolidate payday loans as soon as possible. But before you make a final decision to consolidate payday loan debt, let's check out how this process actually works:

Here, a payday loan consolidation company offers a payment plan you can afford. The consolidators work closely with your lenders to bring down the interest rates and possibly waive off all the additional fees and extra charges. Most companies that consolidate payday loans will offer a free counseling where your current financial situation will be evaluated properly. This will help you get a payment plan, which is affordable.

This debt relief option comes in when you’re struggling to pay high-interest pdls even after making your best efforts. Payday loan consolidation program helps you pay off cash advance loans and get control of your finances yet again.

When should you get payday loan debt assistance?

  • When you want to get rid of loans with high APRs
  • When you want to protect your paycheck from pdl lenders
  • When you’re in financial crisis due to bad payday loan debts

How much do you have to pay every month?

Your new monthly payment amount will depend upon:

  • How many lenders are ready to reduce interest rates
  • How many outstanding loans you have
  • The amount you can afford to pay
How much can you save?
Monthly payment you can afford
$
.00

Payday loan debt consolidation pros and cons

Pros
  • No advance fees
  • Don’t have to pay high-interest rates
  • Don’t have to pay late fees and extra fees
  • Don’t have to endure automatic debits
  • Only one pocket-friendly monthly payment plan
  • Less collection calls & chance of getting sued
Cons
  • Need to avoid pdls in future
  • Need to act as per consolidator’s advice
  • Your collateral is at risk in secured loans
  • The loan term can be long

Why consolidation program is the best payday loan debt solution

Typically, you can get payday loan relief in 2 ways:

1
Consolidation program

This payday loan debt relief option is a better choice since you get a monthly payment plan that fits your budget. You don't have to manage multiple payday loans or put assets at stake anymore.

2
Consolidation loan

This is not a good payday loan debt solution since your asset is at stake. Yes, in case of a secured consolidation loan, you've to pledge collateral as security. If you want to go for the unsecured option, then be prepared to pay higher interest rates.

Compare PDL Debt Settlement, Consolidation Program & Loan

Comparison Payday loan debt settlement Payday loan debt consolidation program Payday loan debt consolidation loan
What it does Reduces total debt Lowers interest rate Transfers debt to another lender
Payoff term 2-4 years 2-5 years 1 -30 yrs
Mode of payment lump sum payment monthly payment monthly payment
Requirements Save an amount before negotiation Make monthly payments Collateral
Credit score Drops initially Improves gradually Improves gradually
Best way to get out of payday loan debt Best when you’re wondering how to pay off multiple payday loans through a lump sum payment. Best when you want to get out of debt by making single monthly payments. A good option when you can pledge a security as collateral.

How can OVLG give you best payday loan debt assistance?

OVLG gives payday loan debt assistance in the following ways:

  1. The financial coach of OVLG explains how to consolidate payday loans and policies like fee structure, the dedicated CRA who will negotiate with your creditors, and the No Result Refund Policy.
  2. The financial coach asks if you want to be a client of OVLG after clearing all your doubts regarding how to clear payday loan debts.
  3. The CRA collects all the information from you including your name, name of the lender, date on which the loan originated, loan term, mode of payment, the amount you have paid till date, the outstanding balance, payment you made till date.
  4. The CRA will analyze your payday loan debt problems minutely. They will check if your loans are legal.
  5. If your loans are legal, then the CRA will determine the maximum interest you need to pay.
  6. If the loans are legal, then the CRA (Customer Relationship Associate) will determine the maximum interest amount, which you need to pay, and if the loans are illegal, the CRA will ask you to pay only the principal amount. Get more information on payday loan assistance
Wed Aug, 2017 Review: KM1 saved $16087.76
Wed Aug, 2017 Review: KM1 saved $16087.76
Client satisfaction level:
      
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* Client names have been changed to protect privacy

5 Lifestyle changes for getting out of payday loan debt

  1. Create a monthly budget depending on your financial situation. Cut expenses where you can like shopping and restaurants.
  2. Downsize to just one vehicle or smaller home and free up some cash.
  3. Use your free time to make more money and clear your payday loan debts quickly.
  4. Downsize your social life if you end up spending more every month.
  5. Get a roommate since this would help you share your household expenses and free up cash to pay off your payday loan debts.

The best payday loan debt advice for you

The best payday loan debt advice for anyone is to avoid fast cash as much as possible. If you need money, then look for alternative sources of lending like:

  1. Friends and family.
  2. Credit union.
  3. Banks who give out personal loans.

Can you go to jail due to legal or illegal payday loans?

Neither authorized payday loan lenders nor illegal lenders can send you to jail when you don’t make a payment. While they can’t send you to jail for pdls, but they (authorized lenders) can sue you at court. There is a risk of default judgment when you lose the case.

CFPB: Proposed laws to end payday loan debt traps and save borrowers

The consumer watchdog Consumer Financial Protection Bureau (CFPB) has proposed new rules in March 2015 to bring an end to payday loan debt traps. The proposed rules aim to save consumers from debt traps mainly in 2 ways - prevention and protection.

Proposed rules:
  1. Lenders have to verify if borrowers can pay off the loan along with interest, fees and principal amount.
  2. Lenders need to check the borrower's’ income, financial liabilities and borrowing history.
  3. There has to be a 60-day cooling off period between payday loans.
  4. Lenders can issue the second pdl within 2 months when borrower’s financial situation has improved.
  5. Once a lender issues 3 consecutive loans to a borrower, he can’t issue a new loan in the next 60 days.
  6. Lenders need to offer reasonable payment plans to borrowers for getting out of payday loan debt.
  7. Payday loan lenders can’t keep borrowers in debt for more than 3 months in a year.
  8. Maximum 2-3 rollovers would be allowed followed by a compulsory 60-day cooling-off period.
  9. Lenders need to suggest a way out of debt before offering second and third loans in a row.
  10. The way out of debt will include: (a) the principal will drop with each loan (b) the lender would offer “off-ramp” for the third loan so that it could be paid off without extra fees.

4 Tips before you get assistance with payday loans online

If you want to go for the payday loan consolidation online option, then check

  • 1 If the company has a valid physical address
  • 2 If the company has good online reviews
  • 3 If the company has budget-friendly fee structure
  • 4Check out the state payday loan laws carefully

How to choose the best debt consolidation company for payday loans

  1. Type the phrase 'payday loan debt consolidation company' in Google.
  2. Go to the official website of the company.
  3. Check out the review section and the fee structure.
  4. Decide if you want to take payday loan debt assistance from this company.
How to search payday loan consolidation company

How to get rid of payday loan debt without consolidation

Ask your lender if he can provide you with an the Extended Payment Plan (EPP) where you can get out of payday loan debt without added fees and interest. You get more time to clear your payday loan debts without getting turned over to a collection agency.


Still have doubts regarding how to pay off payday loans?
Want to know how to get out of payday loan debt?
Call us at (800) 530-OVLG
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