Payday loan consolidation: Can it help you repay high-interest loans?
Payday loan consolidation is a debt relief program that helps you consolidate and repay your high-interest, short-term loans with a single affordable monthly payment plan.
A person stuck in payday loan debt may think it's impossible to get out of the debt trap due to its high-interest rates that increase the debt day by day.
However, it is possible to pay off payday loans without incurring new debt. Let us find out how.
Table of Contents
- Payday loan consolidation: Can it help you repay high-interest loans?
- How to get payday loan debt relief
- Can I consolidate all my payday loans at once?
- Why should you choose our law firm for payday loan debt assistance?
- When should I consider consolidating my payday loans?
- Do it yourself: Can you consolidate payday loan debt on your own?
- How does this payday loan relief program help you save money?
- What are the pros and cons of payday loan debt consolidation?
- Does payday loan consolidation hurt your credit?
- What are the alternatives to the payday loan consolidation program?
- How can you compare your payday loan relief options?
- When should you avoid taking out a debt consolidation loan?
- Can payday loans garnish your taxes?
- How long does an unpaid payday loan stay on the credit report?
- How can you pay off payday loans in installments?
- What if you cannot pay off payday loans in installments?
- How can you avoid payday loan consolidation scams?
- How can I get out of a payday loan without paying?
- How do I stop payday loan lenders from debiting my account?
- Why are the interest rates on payday loans so high?
- Why should you avoid payday loans?
- Are payday loans harder or easier to pay back?
- What percentage of borrowers cannot repay payday loans?
- How long can payday loan lenders come after you?
- Are you aware of the payday loan laws?
- Payday loans are legal in which states?
- What happens if you never pay back a payday loan?
- Can I close my bank account to stop payday loans?
- Do payday loans expire after 7 years?
- Can a payday loan company sue you?
- How many EPP applications can you make?
- How do you find out if your lender is a CFSA member?
- Can the government help with payday loans?
- Payday Loan Consolidation FAQ: Your Top Questions Answered
How to get payday loan debt relief
There are several ways to pay off multiple payday loans. Some of these debt solutions are given below:
- Consolidating payday loans into a single monthly payment plan either through a debt consolidation loan or a program
- Settling payday advance loans to lower your payoff amount
- Opting for an EPP to pay back lenders in installments at a fixed interest rate
Can I consolidate all my payday loans at once?
Yes. You can consolidate both storefront and online payday loans. You can opt for online payday loan consolidation if you face difficulty paying off multiple payday loans.
Doing so can combine payday loans into one payment every month. You can get help with payday loan debt from a consolidation company or opt for do-it-yourself payday loan consolidation.
If you struggle to pay high interest on your loans, just call us at our toll-free number.
Why should you choose our law firm for payday loan debt assistance?
Once you contact us:
You will work with my assistant to gather information on your debts.
I will review your file and contact your payday loan companies. I will inform all of them they cannot harass you anymore.
Once they know I represent you, most payday lenders will consolidate your loans at favorable terms.
I will have you work with my assistant to pay the lender.
You will be debt free in six to nine months.
You should also know:
- We are an FTC-compliant law firm with an A+ BBB rating.
- Our payday loan consolidation process has helped our clients to save more than 50% on their loans.
- We have IAPDA-certified debt specialists and licensed attorneys with excellent negotiation skills.
- We have 400+ video reviews and an 84% client satisfaction rate.
- We have a No Questions Asked Refund Policy for unsatisfactory results.
- You will get a free consultation once you call our toll-free number.
When should I consider consolidating my payday loans?
A payday loan debt consolidation program is your best option when you:
- No longer afford to pay hefty interest rates
- You can't roll over your loans
- You want flexible repayment terms
- Unable to stop lenders from withdrawing money from your bank account
- Tired of paying overdraft fees
Do it yourself: Can you consolidate payday loan debt on your own?
Yes, you can. To do so, you need to negotiate with your payday loan lenders on your own. You have to explain your financial situation to your lenders and convince them to reduce the interest rate on your payday loans. Then, you'd have to plan a realistic budget to save a definite amount every month. Also, you need to make agreed-upon monthly payments to each of your payday lenders yourself.
Before opting for do-it-yourself payday loan consolidation, ask yourself, will you be able to convince your creditors? If not, it would be better to help payday loan relief companies as they are experienced consolidators to help you with the best payday loan relief solution.
As already discussed in the article, you can also take out personal loans to consolidate and pay off this unsecured debt.
How does this payday loan relief program help you save money?
I have helped people like you:
- Reduce monthly payments
- Create a manageable monthly payment plan
- Eliminate late, advance, and extra fees
- Reduce interest rates on payday advance loans
- Stop automatic debits and overdraft fees
- Avoid court fees, wage garnishments, and judgments
What are the pros and cons of payday loan debt consolidation?
- No advance fees, late fees, extra fees, or high-interest rates
- Fewer collection calls
- Lower risk of getting sued
- One budget-friendly monthly payment
- Reduced mental stress
- Have to pay professional fees
- Missing payments can delay the process
Does payday loan consolidation hurt your credit?
Usually, payday loan companies do not convey any information about you to the credit bureaus. Your payday loan debt consolidation program also does not appear on your credit report.
Therefore, enrolling in one of the best payday consolidation programs won't hurt your credit score. It may help improve your credit score after you repay all your debts.Back To Index
What are the alternatives to the payday loan consolidation program?
If you want to repay your debts without using the services of a consolidation company, there are other options to consolidate payday loans. You can take out a personal loan (a debt consolidation loan) to repay your existing credit card debt and other unsecured debts. This allows you to combine your current payday advance loans with one consolidation loan.
The creditor will perform a credit check to assess your creditworthiness. A personal loan usually has a lower interest rate than a short-term loan. You can get personal loans at a relatively lower interest rate if your financial and credit situation is good. The annual percentage rate for storefront and online payday loans can increase to 521%. The repayment terms and conditions of consolidation loans are also relatively better. You will have to make fixed payments every month to repay the new debt consolidation loan.
Debt settlement program
There are other legitimate payday loan relief programs too.
You can enroll in a debt settlement program to repay cash advance loans and other unsecured debt. This program helps you get out of the debt cycle by reducing the total payoff amount.
Debt management plans
Else, and you can contact a credit counselor and enroll in a debt management program. After an initial credit counseling session, you will get a debt management plan for loan payments. The credit counselor will help you pay back payday lenders with one monthly payment.Back To Index
Comparing Payday Loan Relief Options: What's Right for You?
When dealing with payday loan debt, understanding your options is crucial. Here's a comparison to help you choose the right path:
|Payday loan debt settlement
|Payday loan debt consolidation program
|Debt consolidation loan
|What it does
|Reduces your loan's payoff amount
|Lowers your loan's interest rate and monthly payment
|Transfers your debt to another lender
|1 -30 yrs
|Mode of payment
|Lump sum payment
|Sufficient savings to make the payment
|Make monthly payments
|It drops initially but improves over time
|Is this the best way to get out of payday loan debt? Consider the following:
|For paying off multiple loans with one lump sum payment:
This is optimal if you wish to consolidate and clear several payday loans simultaneously.
|For affordable single lower monthly payments:
This option may be best for you if you prefer a single, reduced monthly payment.
|If you have collateral and confidence, you won’t lose It:
This method can be effective if you have assets to secure the loan and are certain you can maintain possession of them.
Consolidation Process: Program or Loan?
The best way to consolidate payday loans is to apply and gain approval. But the choice between a program and a loan can affect the time and process:
If You Choose a Consolidation Loan: The time frame for finalizing the loan may vary after getting your funds approved. Depending on your credit score, approval could take anywhere from a few days to more than a month.
If You Opt for a Program: The approval process for a consolidation program might only take a few days. The timeline will depend on your specific situation and how you wish to proceed.
You can find the right solution to get out of payday loan debt by carefully evaluating these options. Choose wisely and consult with a financial professional if needed to make the most informed decision for your financial future.Back To Index
When should you avoid taking out a debt consolidation loan?
You should avoid taking out a personal loan or a payday consolidation loan if you don't have good credit. This is because online lenders and banks may charge high-interest rates on a new loan as they will consider you a risky borrower.
Debt consolidation loans should also be avoided when the tenure is too long. Otherwise, you may end up paying more in the long run on interest.Back To Index
Can payday loans garnish your taxes?
Private lenders or creditors cannot garnish your federal tax refund. The IRS can offset or reduce the refund to pay delinquent debt such as unpaid state income tax, past-due child support, etc. However, the IRS will not offset a refund for a private loan, such as a cash advance loan.Back To Index
How long does an unpaid payday loan stay on the credit report?
High-interest payday loans are usually not listed on credit reports. Payday lenders don't conduct a credit check on applicants before offering a loan. Therefore, it doesn't show as a hard inquiry on your credit report. The lenders also don't notify the credit reporting agencies.
However, if a lender can't recover the unpaid amount and sells the debt to a collection agency, it may appear on the credit reports. It can stay on your credit report for seven years in such a situation. As a result, your credit scores can become lower to some extent.Back To Index
How can you pay off payday loans in installments?
An Extended Payment Plan (EPP) will help you pay off the outstanding balance on your payday advance loans, usually in four equal installments, without added fees or interest
Under an EPP, if your payday loan company is a member of the Community Financial Services Association of America (CFSA), they can't:
- Compel you to repay the loans.
- Threaten or force you to make immediate payments.
You will be charged additional fees for this option. In addition, they will be required to allow you your next four paydays to repay them.
You can ask for an EPP if you have taken a loan from a CFSA member. After you submit your application, you'll get a new statement detailing your modified loan agreement. The terms will indicate the amount of the four equal payments you will need to make over the next four paydays. There will be no new fees or interest charged for these new terms.
You can make payments in cash or use the ACH debit option to have the charges withdrawn automatically from your account on payday. Once you have set up the EPP, you must inform the lender. Most lenders won't allow you to change the payment method after you have signed the new agreement.Back To Index
What if you cannot pay off payday loans in installments?
The consequences of failing to pay off your EPP loan can be severe. Your lender may charge you an additional EPP fee and other charges and penalties. They can also increase the payment amount you must make each pay period. They can also sue you for principal, interest, and penalties.
So, it can be a financial disaster that you should avoid. Before entering into an EPP, be sure that you can make the payments and make them on time and every time they're due.Back To Index
How can you avoid payday loan consolidation scams?
There are a few legitimate BBB-accredited payday loan consolidation companies that help borrowers to get out of debt. On the other hand, fraudulent payday loan relief companies make false promises and take your money. A wise financial move is to look for legitimate payday loan consolidation companies and avoid scammers.
Here are a few ways to do it:
Look at the BBB rating - Always go for BBB-accredited payday loan consolidation companies with a good BBB rating. Stay away from companies with poor BBB ratings and unresolved complaints.
Watch out for tribal affiliations - Payday loan relief companies with tribal affiliations are not legal in the US. Beware of them, as they can't consolidate your payday loans.
Check their credentials - Look at the official payday loan consolidation companies' websites. Do not contact them if they don't have proper business records and an official address.
Ask about their fees - Legitimate payday loan consolidation companies would never charge upfront fees, but the fake ones will. So, if any payday loan debt consolidation company asks you to pay advance fees, it's a warning sign.
A good payday loan consolidation company charges fees according to FTC guidelines. Fraudulent companies are less likely to have a definite fee structure. Read the fine print of the agreement to see any hidden fees.Back To Index
How can I get out of a payday loan without paying?
Honestly, you will have to repay the outstanding balance on a legal payday loan and only the principal amount in case of an illegal one.
So, in the case of a legal payday loan, it is better to think about consolidating payday loans and getting out of debt instead of not paying at all.
Here are a few ways to get out of payday loan debt:
Go for a payday loan consultation with a reputable counseling agency.
Opt for legal payday loan consolidation help.
Try the payday loan debt settlement option.
Prioritize your debts and make a debt repayment plan.
Ask for an EPP (Extended Payment Plan).
Take out a suitable loan to get relief from payday loans.
Go for payday loan credit counseling.
Ask for help from your family and friends.
How do I stop payday loan lenders from debiting my account?
You can opt for ACH Authorization to stop a payday lender from debiting your account. You can revoke the authorization by writing to the bank or credit union and the payday lending company. You can also stop bank charges by submitting a stop payment order to the bank.Back To Index
Why are the interest rates on payday loans so high?
The high-risk nature and short repayment term make payday loans quite expensive. Eighteen states cap the interest rate at 36% on a $300 loan, which is pretty high compared to traditional loans. Payday loans come with high fees too.Back To Index
Why should you avoid payday loans?
These loans are high-interest, short-term loans designed to be paid back with your next paycheck. Usually, the total amount of the loan becomes due within two to three weeks after the loan is issued. Most people make a partial payment and then take out a new payday advance loan to repay the existing balance. This gets them into the payday loan trap, making it difficult to eliminate these loans and find payday debt relief.
Unfortunately, even the most responsible borrowers may face a situation where they can't pay back the outstanding amount by the due date. They can't even secure a new loan to cover the difference.
If you can't pay on time, you may receive calls from debt collectors. And your outstanding balance will skyrocket because of the very high-interest rates typical with almost all online payday loans.
If you need money, look for payday alternative loan. For example, you can take out a personal loan from a friend or a credit union at a low interest.Back To Index
Are payday loans harder or easier to pay back?
Usually, payday loans are relatively more challenging to pay back than traditional loans. Payday loans typically come with a very high-interest rate. As a result, the outstanding balance increases quickly if you can't pay it back with your next paycheck.Back To Index
What percentage of borrowers cannot repay payday loans?
About 91% of payday loan borrowers cannot repay their loans and get trapped in a repeat borrowing cycle: taking out one loan to repay the previous one.Back To Index
How long can payday loan lenders come after you?
Payday loan lenders can come after you for at least 7 years. Unpaid loans remain on a credit report for 7 years and 180 days. So lenders can call you for payments till that time. Sometimes, lenders may call you even after the 7 year period is over.Back To Index
Are you aware of the payday loan laws?
Check out the payday loan laws of your state to find out if lenders are following all the rules. For example, if you want to opt for legal payday loan consolidation in Florida, you need to know that a person can have only one loan at a time. You can opt for payday loan consolidation in Utah if you have a regular monthly income, unsecured debts, and valid identity cards. Therefore, check out these laws, especially if you opt for do-it-yourself payday loan consolidation.Back To Index
Payday loans are legal in which states?
Payday loans are allowed in the following states:
- North Dakota
- Rhode Island
- South Carolina
What happens if you never pay back a payday loan?
If it is a legal payday loan, defaulting on them can lead to overdraft fees and collection calls, which can also hurt your credit score. You may quickly get into a debt trap when you can't repay the payday loan with your next paycheck.
Therefore, if you need help with cash advance debt, you can opt for legal payday loan consolidation online. However, when accepting payday loan help, ensure you get help from BBB-accredited payday loan companies like OVLG.
Also, check out payday loan debt assistance reviews before opting for payday loan help.Back To Index
Can I close my bank account to stop payday loans?
It is not advisable to do so. When you take out a cash advance loan, you either write a personal check or give the lender permission to withdraw money from your bank account. If you close your checking account, the lender might withdraw money or cash the check.
As a result, you may accumulate bank overdraft fees. The lender may also send the debt to collections, and it may sue you to collect unpaid debt. A payday lender can try to cash the check, for which you may incur overdraft fees. Therefore, it is always better to get help from the best payday loan consolidation company to consolidate cash advance loans.Back To Index
Do payday loans expire after 7 years?
The payday loan lender can collect the unpaid balance for about 60 days. Then, the lender may sell the debt to a collection agency, and it may sue you to get a judgment and collect the unpaid amount. The collection agency may report it to the credit bureaus, staying there for seven years.
However, a collection agency can't sue you for not paying a time-barred debt or if the statute of limitations has expired.Back To Index
Can a payday loan company sue you?
A collection agency can sue you for not making a loan payment. If a payday loan lender sells the unpaid debt to a third-party collection agency, it can sue you and get a judgment against you to garnish your wages. To avoid that, you can opt for help with payday debt consolidation if the payday loan is legal.Back To Index
How many EPP applications can you make?
Under federal law, you can apply for an EPP with each payday lender only once per year. However, state laws vary, so you should check the laws lenders are obligated to follow in your state.
Also, remember that you can't take out another payday advance loan until you have paid off the entire amount due on your EPP.Back To Index
How do you find out if your lender is a CFSA member?
Carefully read the information on the payday loan lender's website and look for the CFSA logo.
If the company has a physical address, it may be better to go in person to see the blue oval logo, which should be prominently displayed in their office.
If the CFSA member agency doesn't agree to give you an Extended Payment Plan, you can call the CFSA Hotline at [1-888-572-9329] between [9 A.M. to 5 P.M.] EST. You can also register a complaint at the CFSA website.Back To Index
Can the government help with payday loans?
The government doesn't provide much support for the payday loan debt, and there is not much protection as far as federal law is concerned. Many states have payday loan laws, but few have outlawed payday loans.
Also, people often take out tribal payday loans. A tribal lender can opt for tribal immunity and offer loans with high-interest rates without being accountable for breaking usury laws.Back To Index
Payday Loan Consolidation FAQ: Your Top Questions Answered
A. Typically, it ranges from 12 to 24 months, but it's contingent on your debt amount and the terms of your new loan.
A. Generally, yes. Once you consolidate and start making payments to the new lender, collection calls from previous lenders should cease.
A. Absolutely! OVLG specializes in assisting individuals like you with payday loan debt solutions. Our team of professionals will collaborate with you to devise a tailored debt settlement plan or a debt consolidation program. Contact us at (800) 530-6854 to embark on your path to financial relief.
A. Consolidation aims to make your debt more manageable by combining multiple loans into one. On the other hand, bankruptcy is a legal process that can discharge some or all of your debts, but it has significant consequences for your credit and financial future. It's essential to consult with a financial advisor or attorney to understand which option is best for your situation.
A. Typically, you can exit a program, but fees or penalties might be involved. It's crucial to understand the terms and conditions before enrolling.
I've been enrolled in the debt consolidation program with Oak View law group for about a year and a half now, and I must say that the program has been helping me out with my debts. Oak View law group has done an excellent job.See More ...