Do your unfinished payday loans make you anxious about rapidly increasing bills? Many times due to inevitable situations, you may be bound to raise numerous loans, which you may later find hard to repay. Pay loan consolidation is a good means to merge all previous loans into a newer loan with a convenient repayment strategy.
There are normally two modes in which these consolidation loans operate. In the first mode, on your behalf, a debt consolidation company handles all your loans while charging a definite amount. The second mode is where you accept a big debt from a consolidation company to repay all your payday liabilities.
Read on to learn more about payday loan consolidation program to understand its importance.
What Is Payday Loan Consolidation?
The replacement of several loans with a single lump sum figure, frequently with a smaller monthly repayment and an extended payment period is called a payday loan consolidation. When you merge payday loans, a high-interest charge is minimized to an affordable level. These loans work similar to any other debt consolidation program.
Payday loan consolidation can be helpful in:
- Getting free of payday loan trap
- Reducing interest rates on your loan
- Minimizing/waiving off penalties and charges
- Single monthly payment
- Simpler budgeting
- Freedom from handling separate creditors
- Preventing creditor/collection harassment
How Does Payday Loan Consolidation Work?
When you sign up with a debt consolidation company, they manage everything on your behalf.
- These companies approach your lenders in order to convince them to lower interest rates and forgo penalty charges.
- The company will also negotiate with your payday lenders, as part of payday loan consolidation system, for either a monthly repayment program or a one-time settlement.
- The debt consolidation company will then merge all your loans into an individual one which is usually agreed to be repaid as easy monthly installments.
- The payments you make to the consolidation company are further disbursed on your behalf to your respective lenders.
Is Payday Loan Consolidation Legit?
Yes, only if you register with a legitimate and authentic consolidation company. If you are employing a payday loan consolidation company to manage your debt issues, you should do a thorough background check of the company to verify its credibility and reputation. A legitimate consolidator will make the loan repayment a hassle-free activity for you by negotiating with your creditors on your behalf to come up with a simple and affordable repayment plan for you.
Is It Better to Pay Off a Loan Early?
If you can repay your payday loan sooner than anticipated, it can only enhance your dealings with your lender. Most payday lenders provide the option to settle your loan early but are cautious as some lenders may ask you for a pre-closure fee. To keep yourself from paying such a fee, ensure to review your loan agreements carefully before deciding on an early payoff.
Can You Go to Jail for Not Paying Back a Payday Loan?
You won’t be jailed for not paying a payday loan because it’s not a crime in the U.S. Constitution. According to the law in the United States, debtors cannot be imprisoned for failure in debt repayment. The payday loan company surely has the right to follow up on repayment through lawful collection means, including filing a minor claim proceeding against the debtor.
At Cash in a Snap, we are committed to helping you secure the best suitable payday loan debt consolidation plan at considerable savings to free you from your financial burden.
Contact us at (844) 514-1123 or visit us online at Cash in a Snap for further information about the advantages of payday loan consolidation program. We will connect you with our team of experts who will guide you through their knowledge and tools to resolve your financial issues.
Kimmy Burgess is the Manager of Cash in a Snap, which helps clients get connected to its large network of reputed lenders to get an instant cash advance online when they need it. Kimmy has over 20+ years’ experience in Administrative Management, with many years in the lending industry. Her expertise includes customer service, client services and other functions in the payday lending business. She has also spent time in the mortgage industry prior to her move into the payday lending field.