Payday loans are the short term debts with higher interest rates, these loans are generally issued for a general $ 500 amount. The loan amount is due upto next payday. The people who take these loans must be prepared with a sufficient amount of payday, otherwise the debt amount will not be easy to repay.
These loans are issued with the high APRs Annual percentage rates, these fees are generally 300 to 400 percent of the actual amount.
Why are the people trapped with these loans?
The people are generally trapped in these loans because of the terrible loan cycle followed by these loans. Only a minimum number of the total borrowers can repay their payday loans on their own. Otherwise these loans become more challengeable for repay.
Payday loans Disadvantages
There are many disadvantages involved with the payday loans. Here we have discussed some of its crucial disadvantages.
- Higher interest rates – These loans may include very high APRs Annual percentage rates. When a person is not able to pay these loans on time, it will be covered with very high debts which is not very easy to pay without a payday consolidation.
- Short payday periods – These loans include very short payday periods, generally the loans must be repaid within the next payday. When the loans are not paid on time the lender traps the borrowers with multiple paydays and their interests.
- Higher external charges – Many times the loans included with several external fees, the companies who issued payday loans always trap their customers and hide many externals fees on the time of issuing. Which later disturbs the borrowers paying cycle.
- Payday repay calls- These payday loan companies force their customers by calling them several times to repay their loan, when the person is not paying his/her payday on time they pressurise the customers with their various crucial methods.
Payday loan consolidation
The payday loan consolidation companies are behaving like banks which generally provide the long term loans to the people who are suffering from higher debts and interest rates. These loans are the single amount which may be used to pay the whole payday loans, so the customer must be free from multiple payday loans. These loans include the long term monthly payments with a decent interest rate, mostly the customers prefer to take these loans to repay their payday loans.
How to consolidate my Payday loans?
- Analyse the different ways of payday loan consolidation and pick the best one.
- Check whether you are qualified for a loan or not.
- Submit the loan application on time.
- Now, check the progress and get the funds.
- Now, Pay your payday loans on time.
Benefits of Payday loan Consolidation Companies
There are many advantages of payday loan consolidation companies, the main includes the money saving. When you go through the process, you will get the complete satisfaction from these consolidation companies which helps these payday borrowers to get relief from their financial stress.