If you are seeking financial alternatives to meet your pressing needs, you are not alone. Though, sometimes we get carried away and take out so many loans from different payday loan providers that it becomes a problem to pay them back.
While there are certainly great payday loan providers with considerably great repayment packages and interest rates, sometimes these loans are structured in a way that could trap an unmindful borrower.
Late payment penalties and accrued loan interest pile up into sums that are often greater than the loan borrowed. If you ever find yourself in this situation, consolidating your payday loans from different lenders with a payday loan relief company remains the best option to get out of repayment faster.
What Are Payday Loan Relief Companies?
These are companies that design payday loan relief programs to help borrowers consolidate their several payday loans into one single loan. The company serves as a third-party middleman between the borrower and the lender.
With this, a new loan arrangement is formed with the payday loan relief company, making them liable to pay back your loans to the initial lender directly. Consolidating several payday loans reduces the long-term accumulation of interest and other accruing penalties for nonpayment of the loan sum. All you have to do is pay the loan relief company a flat monthly rate.
Payday Loan Debt Relief Options
Borrowers have two options when it comes to consolidating multiple loans. The first option is getting into a payday loan relief plan where a third-party loan company takes responsibility for your accrued debt for a fixed monthly or periodic fee. The other option is getting a debt consolidation loan, which is more of a personal loan taken out to pay off all past-due payday loans.
The debt consolidation loan seems like a better option as it puts you in charge and has a fixed interest rate or service fee. However, your credit rating might be considered when applying for a debt consolidation loan, making it quite difficult to secure it quickly. Therefore, seeking payday loan relief companies helps you create a faster way out of debt without paying high interest fees and other penalties.
Payday Loan Consolidation Companies
Payday loan consolidation companies have one clear objective—to help you pay off your accumulated payday debts. They also help you pay less than you owe, both theloan and the late payment penalties. These companies access your debt profile and help you create an account that ultimately caters to your interests to offset all debts.
Thus, instead of drawing a different sum from one account to pay multiple lenders, you can draw just a fixed sum into your account with a payday loan consolidation company to pay many lenders. In most cases, the consolidation companies would have negotiated better payment terms in your favor, making repayment more affordable.
It is not unusual to see a slight dip in your credit score when you engage a loan consolidation company, although many great loan consolidation companies promise otherwise. This is because taking up an additional payday loan consolidation on your already accumulated debt brings about a further reduction in the average age of your accounts. This is in addition to the “hard inquiry” status on your credit report that the nonpayment of your payday advancement would have given your accounts.
Nevertheless, your credit score improves with time, as a dedicated remittance into your loan consolidation account will allow the loan consolidation company to offset all existing debts.
Pros and Cons of Utilizing Payday Loan Relief Plans
|It provides you with access to loan experts at almost no cost.||May cause a dip in your credit score.|
|It helps you pay less in default fees, as your repayments are negotiated to better terms by experts.||Not all lenders allow for loan consolidation.|
|It gives you a more flexible loan repayment plan.||Some loan consolidation companies offer a maximum limit to the number of debts they can consolidate.|
|It helps you minimize further debt as your accounts are locked until all debts are fully repaid.|
Five Best Payday Loan Consolidation Companies
We would never allow you to walk alone or fall into a scam. So, we’ve filtered through many online payday loan debt companies to bring you our best five payday loan debt companies. These companies not only offer their services across America, but they also have the most favorable debt settlement policies that will ensure your debts are repaid quickly and comfortably.
1. Accredited Debt Relief
Accredited Debt Relief offers a realistic debt settlement plan for your payday debt that helps you offset your accumulated debt. In just three steps, and through their free consultation services, you get their experts evaluating your debt situation and offering you the most flexible payment plan.
This company doesn’t charge upfront for any of their debt settlement services rendered nor do they charge interest rates on their loan consolidation services. The only fee they charge is a fixed rate on each repayment made in your favor. Furthermore, they offer a flexible payday loan relief program for twelve to forty-eight months.
How It Works
With Accredited Debt Relief, your loan settlements are resolved in three phases. The first phase is the consultation stage, where you engage the company’s debt expert to evaluate your situation for free. This phase also gives you access to a free, customized money deposit plan based on your budget, enrolled debt, and financial goals.
In the second phase, you commence payment into your dedicated savings account, all credit card usage is stopped, and the company’s team of debt resolution negotiators commence work to negotiate favorable settlements with your creditors. Your payment plan may require you to deposit between 45% and 50% of your debt into a savings account.
All your unpaid payday loans are settled in the third phase for a service charge of between 15% and 25% of the account. They also offer personal loan advancement options to help offset your payday loans. You may consult their team or read more about their loan consolidation services here.
DebtHammer is a similar online payday loan consolidation company that offers a secured debt settlement arrangement through a flexible payment plan and a free debt expert consultation. From your free consultation, the company can assess your debt situation and determine whether or not you qualify for their debt settlement plan, and, in most cases, you do.
All automatic withdrawals from your accounts are stopped through a well-negotiated settlement agreement with your lenders. Also, all debt payments are linked to a specially created savings account where DebtHammer, as a third-party debt settler, pays off your overall loan debt. Sometimes, you get to pay less than what is originally owed.
How It Works
In less than thirty seconds, DebtHammer sends help your way through their debt experts to help you come up with a payday loan consolidation plan. They understand the intricacies of payday loan traps—by filling out their application form, you’re already in good hands.
From their application form, it seems they can only settle a loan that is slightly above $3000. Nonetheless, a chat with their credit counselor will reveal if they can get you on board with their payday loan consolidation program.
In addition, they offer a twelve-month relief plan that comes with no hidden charges or annual percentage rate. For servicing your outstanding payday loans, they will charge you a convenient flat rate fee.
In the long run, you will be able to escape the payday loan trap and perhaps pay less than you owe through simple monthly payments. Start your free consultation with DebtHammer to eliminate payday loans now.
3. Solid Ground Financials
With Solid Ground Financials, you can cater to personal loans exceeding $20,000. This debt settlement company helps you avoid the rigors of high-interest loans and offers you simple payment plans that best suit your repayment needs through their payday loan consolidation programs. With their team of professionals, your loan relief will be fast-tracked.
Like every great debt consolidation company, they negotiate favorable settlements with your lenders to reduce all accrued interest on your multiple payday loans, so you can reduce late fees and interest by up to 600%.
How It Works
Just log on to their website to fill out a quick application form for payday loan borrowers. This simple application will allow the company to assess your debt situation and link you to a credit counselor.
As a plus, this payday loan consolidation company doesn’t only handle payday loans. They can also consolidate other types of loans, credit cards, and medical bills to give you access to your checking account without worrying about lenders.
In extreme cases, Solid Ground offers attorney support to help you fight bankruptcy and improve your credit score. Their loan assessment consolidation is free, and within seventy-two hours, all settlement paperwork with payday loan lenders will be finalized into a payday loan consolidation program that is flexible to your needs. All of these are for a lower fee than most of the ones accruing from your high-interest loans.
4. Best Egg
Best Egg offers up to $50,000 in payday loan consolidation payments. The company has designed a system that helps free you from the shackles of the payday loan trap and allows you to repay all your payday loan debt at a very low service charge rate.
Best Egg has designed a repayment structure to cater to large sums of debt without hurting your credit score or increasing your current interest rate. They offer one of the most flexible payment structures you can ever find, as they allow payday loan borrowers to spread their payments for as long as three years.
How It Works
This debt consolidation company offers instant consultations with its best debt experts and provides a very flexible loan repayment structure. The structure caters to all outstanding payday loans between $2000 and $50,000, which you can repay conveniently from your special savings account with them within one to five years.
The information they require is very basic, so you can complete the loan application in minutes. However, it might take a few hours to have your application fully assessed before any money is advanced to you.
Best Eggs doesn’t only deal with the consolidation of short-term loans. You equally have access to a personal loan, mortgage loan, car loan, and other variants of loans on the platform.
All payable interest on the consolidation advancement is fixed and predictable. The interphase of the website also allows you to calculate your estimated monthly payment by answering a few questions, even before proceeding to fill out the application form.
5. Real PDL Help
If you have payday loans that you are struggling to repay or are caught up in the seemingly never-ending cycle of renewing loans, Real PDL Help can save you. This company has successfully set up repayment plans of six to twelve months with payday loan lenders, providing borrowers with payments they can afford and relief from payday loan company harassment.
If you have more than one payday loan, Real PDL Help will consolidate all your loan payments into one lower monthly payment that will be distributed to each of your lenders. Real PDL Help is not a payday loan company. Rather, they are credit unions that offer strictly loan consolidation services only.
How It Works
Real PDL Help doesn’t advance loans, unlike other payday loan relief companies. Instead, they offer their ongoing support to put structure into your payday loan debts and repayment plans. Like many other payday loan debt companies, your journey with this company starts with a free consultation to assess your debt situation.
Then, your credit score and debt history are used to negotiate favorable settlement plans with your lenders to help you create flexible repayment timelines and reduce the accruing high-interest rate on your payday loan debt.
All individual payday loan debt deductions from your multiple payday loan providers are stopped and deductions are limited to a special savings account with a single monthly payment plan. Real PDL Help also provides continuing expert support until all your debts are fully settled.
Frequently Asked Questions
How Does Payday Loan Relief Work?
Most companies that provide loan consolidation services can do so in one of two ways. First, a new loan is taken from the debt relief company to offset all the accumulated debt from multiple payday loans to different creditors. This way, many creditors are settled with a newly advanced loan from the relief company.
Second, the company helps you plan your checking account, stop automatic withdrawals from creditors, and formulate a payment structure to offset all payday loans.
Whichever method you embrace, a debt relief company helps negotiate your current repayment terms, so you can pay less than you owe.
Can a Debt Management Plan Help With Payday Loans?
There is no way to offset your accumulated payday loans without a management plan. Usually, the lack of a plan is what causes debt and financial struggle in the first place. Thus, by putting structure into your finances, you end up having a plan that helps you settle every outstanding loan. You will be living a debt-free life in no time.
How Can I Get Rid of Payday Loan Debt?
You can take out a personal loan to offset your payday loans or you could work with a debt settlement company to help you consolidate your payday loans and formulate a payment strategy for you. Note that taking a personal loan may provide more autonomy, but, in the long run, the inability to pay back this loan may generally bring down your credit score.
Also, suppose you are unlucky enough to take out payday loans whose nonpayment reflects on your credit scores. In that case, creditors may be unwilling to advance you further personal loans to offset your accumulated payday loan debt. This leaves you with payday loan consolidation as the next viable option. Thus, it is recommended to turn to a debt settlement company to help get rid of your loan debt.
Can I Put Payday Loans into Debt Consolidation?
Yes, you can. Although, some lenders may have a debt consolidation clause in their loan agreement where they exclude that possibility right before you take up their loans. Fortunately, most lenders will gladly allow debt consolidation because it helps make repayments more feasible.
Can Payday Debt Consolidation Hurt My Credit?
Generally, consolidation will not hurt your credit in any way; however, be mindful of debt consolidation providers who don’t disclose their policy on minimum monthly payments. This is due to the fact that failure to pay your monthly fees into the debt consolidation account may have a negative impact on your credit score.
Can I Declare Bankruptcy if I am Unable to Repay My Payday Loans?
You can, but we highly recommend you seek consolidation first when you are in bad payday debt. Bankruptcy should always be the last step you take in a terrible debt situation. This is because your bankruptcy status stays on your record for seven years after filing.
This might scare away creditors from further advancing cash to you when you are in dire need of it. Payday loan debt consolidation companies are always willing to help you if given the opportunity. Therefore, do not hesitate to seek them out.