Government finance – Dawn For Governor http://dawnforgovernor.org/ Mon, 18 Apr 2022 08:23:06 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://dawnforgovernor.org/wp-content/uploads/2021/10/icon-1.png Government finance – Dawn For Governor http://dawnforgovernor.org/ 32 32 What are the Car Title Loans? https://dawnforgovernor.org/what-are-the-car-title-loans/ Wed, 16 Mar 2022 16:22:43 +0000 https://dawnforgovernor.org/?p=2067 If you decide to take out a car title loan, it’s essential to be aware of what you’re getting yourself into, or else loan-lending services could profit from you. This is a fantastic chance to cash in quickly with a car that has a clean, accessible, and unmarked title Auto tilte Loans from Consolidationnow.  But you […]]]>

If you decide to take out a car title loan, it’s essential to be aware of what you’re getting yourself into, or else loan-lending services could profit from you. This is a fantastic chance to cash in quickly with a car that has a clean, accessible, and unmarked title Auto tilte Loans from Consolidationnow

But you should be confident that in the event of a problem and you’re unable to repay the loan, and you’ll need to provide the car’s title to the loan. In essence, the cars are used as collateral.

A lot of people like this method. A small loan secured by the car title can be ideal. If you’re confident that you’ll be able to repay the amount borrowed and also the interest, it might not be a problem. But for some, it may start well but then turns unsettling in the final.

This is the process

Car title transfers to a title loan provider will require absolutely no outstanding debts to anyone. Some companies may additionally need you to be fully insured. This is a good indicator. If the lending service has the vehicle’s title, it will allow you to drive the car. However, certain title loan providers may loan you money but keep the car until the loan is paid back if the car is not insured.

The amount of cash the borrower will receive will depend on the loan provider you choose. Some may give you more money than others. Certain lenders have specific amounts, while others vary in their lending capacity by the client they deal with. 

If you are using variable services, the amount you get could be contingent on the value of your vehicle. This gives you the chance to find the most affordable price on the market.

Many services have limited the amount of times you can get a loan through their platform if you haven’t paid back the loan. They operate the same way as conventional payday loans, but the only thing you’re putting at risk is the title of your car.

If you don’t fulfill the conditions of the loan contract, The title loan company has the right to terminate your vehicle. It is essential to remain confident about the loan deal.

A car title loan could be beneficial in times of emergency. If you’re in financial trouble and have a vehicle, offering your vehicle for a loan is a great idea to help meet your financial needs. There are a variety of services that will assist you in obtaining excellent car title loans, but relying on them all could be an error. 

Choose reputable services with extra features and services that will comprehend your requirements and needs and are ready to help you most efficiently.

]]>
Alternatives to Payday Loans: Which Option is Best for You? https://dawnforgovernor.org/alternatives-to-payday-loans-which-option-is-best-for-you/ Fri, 07 Jan 2022 08:00:00 +0000 https://dawnforgovernor.org/alternatives-to-payday-loans-which-option-is-best-for-you/ When you’re short on cash, the promise of a hassle-free quick cash payday loan may seem like an attractive option. But is it your only one? The Center for Responsible Lending calls payday loans “predatory” — for good reason. The ease with which borrowers can get their hands on funds to float them to their […]]]>

When you’re short on cash, the promise of a hassle-free quick cash payday loan may seem like an attractive option. But is it your only one?

The Center for Responsible Lending calls payday loans “predatory” — for good reason. The ease with which borrowers can get their hands on funds to float them to their next paycheck often takes a heavy financial toll. Several states now cap interest on payday loans at 36%. However, according to the CRL, annual percentages can be as high as 664% in states with no cap.

Payday loans pose a problem because of their high interest rates, but renewals pose an even greater danger. If you are unable to repay the loan by its due date, the Consumer Financial Protection Bureau warns that many states allow payday loans to be renewed. In this case, you would only pay the fees due on the loan while the maturity date is extended. You will then be charged a renewal or rollover fee, as well as any late fees, and you will still owe the original amount. This is what leads to a costly cycle of indebtedness.

The good news is that payday advances aren’t your only option if you’re in dire financial straits. Here are some alternatives to consider.

Make a payment plan

For example, if an impending credit card or other loan payment jeopardizes your ability to pay basic expenses, see if you can work out a deal. Many card issuers offer hardship programs that allow you to reduce or temporarily suspend payments if you are unable to pay. Alternatively, your issuer may agree to lower your interest rate to help manage your payments.

If you’ve been a good customer in the past, your lender will be more likely to respond to your request. Either way, it’s best to be upfront about your situation.

Seek credit counseling

If you can’t get along with your creditors, try working with a nonprofit credit counseling agency. A certified credit counselor can set you up with a debt management plan, in which the counselor negotiates with your creditors to extend your repayment terms, lower your interest rates, and waive fees so you owe less on a monthly basis. You then make a one-time payment to the credit counseling agency each month, and they pay your creditors on your behalf.

A credit counselor can also help you set a budget, give you tips and tools to control your debt, and provide training and additional resources to get your finances on the right track. This way, you won’t need to borrow money to meet your basic expenses. These services are often free or available for a nominal fee.

Get a personal loan

Although banks have a reputation for being bureaucratic and slow, you shouldn’t pass up your local financial institution when you’re in trouble. If you need money for a specific purpose, a personal loan from a bank or credit union could be a much cheaper alternative to a payday loan.

“It’s more of a traditional borrowing arrangement, structured so that you get a sum of money to fund something you need to buy or refinance, and you’ll have a repayment schedule,” explains Andy Laino. , financial planner at Prudential.

But you are not limited to physical institutions. Online lenders like SoFi and Earnest let you see the rates and terms you qualify for without going through a rigorous credit check. While these options don’t offer same-day funds like payday loans, some personal loan options can fund your bank account within days if you’re approved.

They can also be a good option for borrowers with not so good credit. The lenders already mentioned, as well as LendingClub, TD Bank and others, are some of the best options for bad credit loans. Keep in mind that if you are approved for a personal loan with bad credit, you will pay a much higher interest rate. However, it will still be a bit less than what a payday loan charges.

“Personal loans are best used for debt consolidation, for people who have large medical expenses or who know they will have home repairs at a fixed price,” Laino says. “When you have more defined expenses or more defined projects, go for the personal loan.”

Tap your home equity

Homeowners may qualify for a low-interest, tax-deductible line of credit, says Howard Dvorkin, personal finance expert and president of financial education company Debt.com. “For those with a stable income, this can be a great way to access cash quickly,” he says. Average interest rates for home equity lines of credit are around 4%.

However, be extremely careful when leveraging your home for quick cash. “For those who are struggling financially, tapping into their home’s equity puts their home at risk if they can’t repay their debt,” Dvorkin said.

Get an alternative payday loan

Some feds credit unions offer a special product known as an Alternative Payday Loan, or PAL. These are short-term loans designed to prevent borrowers from opting for high-interest payday loans.

The terms of these loans are standardized by the National Credit Union Association. PAL I loans are available for amounts from $200 to $1,000, with terms of one to six months. The issuing credit union may charge an application fee of up to $20 only, according to MyCreditUnion.gov. You must be a member of the credit union for at least one month to take out a PAL I. PAL II loans are more flexible – they allow you to borrow up to $2,000, with a term of one to 12 months, and are available as soon as you become a member of a credit union.

Keep in mind, however, that alternative payday loans can still carry quite high interest rates. Fortunately, PAL interest rates are capped at 28% by law.

Secure a cash advance by credit card

Relying on a credit card cash advance is never a cheap option, although it’s probably better than a payday loan. Most issuers will charge a percentage of the advance as a fee, usually around 5%, with a minimum of $5-$10. The average APR on cash advances is also around 25%.

The key is to repay the advance immediately, before the interest on the balance gets out of control. Unlike purchases or balance transfers, interest begins to accrue immediately on credit card cash advances. If you let the balance linger month after month, your short-term loan could turn into a long-term debt problem.

Get a salary advance from your employer

A payday advance could be the answer to your short-term cash flow problem. Not all companies offer these types of loans and terms vary. It is essential that you understand that the advance is in fact a real loan that you must repay according to the agreed schedule.

Use a Paycheck Advance app

If you don’t want to involve your company in your financial situation and you have a regular salary, you can go through an application instead. Companies such as Earnin and Brigit will pay you a portion of your next paycheck without any interest. Fees are limited, although some apps allow you to tip voluntarily.

Borrow from your 401(k)

It’s possible to tap into another workplace resource besides your paycheck: your 401(k). Although traditional advice would have you running for the hills before withdrawing money from your retirement account, a 401(k) loan is a valid option if you’re really stuck.

Borrowing from your 401(k) is tax-free as long as you follow all the rules. This means repaying the loan on schedule or in full if you leave your employer. It also does not require a credit check and you repay the interest to your own account. As long as you repay the loan within about a year, the impact on your long-term earnings should be minimal. Remember that your employer may not allow you to make new contributions to your 401(k) while you are repaying a loan. This could slow your progress in growing a retirement nest egg.

Go to a pawn shop

Pawnbrokers offer secured loans with no credit checks or lengthy application process. You can receive cash on the spot by pledging an asset as collateral. Once you have repaid the loan and any fees by the agreed due date, you get your collateral back. If you cannot repay the loan on time, you lose any assets you have pledged.

Keep in mind that the cost of borrowing from a pawnbroker varies widely and is always higher than a traditional bank loan. Interest rates generally range from 5% to 25% per month (60% to 300% per year), depending on state law. There may also be storage and insurance costs included in the loan. The advantage is that if you can’t pay it back, you can walk away without incurring any new charges or damaging your credit.

Use a peer-to-peer lending platform

Peer-to-peer lending can also help you get quick cash by connecting you with an investor through a lending platform like LendingClub or Prosper. Investors on these platforms can review the available loans and select the one they want to fund. In exchange, the investor charges interest. You may also have to pay a small loan origination fee.

Interest rates on P2P loans can be quite low, especially if you have good credit. At LendingClub, the range is 7.04% to 35.89% APR. The application process is generally much less complex than at a bank. P2P lending also offers other advantages. “A peer investor can be friendlier than a traditional bank,” says Dvorkin.

Ask your family or friends

Finally, if sinking deeper into debt due to high fees and interest rates is a real concern, consider turning to a trusted family member or friend for financial assistance.

This option can be difficult to navigate, but could be a good choice if it allows you to avoid the exorbitant interest and fees of a payday loan. Keep in mind, however, that borrowing money from a friend turns a personal relationship into a professional relationship. You need to be comfortable with the fact that you owe this person, and the relationship could turn sour if you don’t keep your end of the bargain. Your loved ones should only lend what they can afford to lose.

]]>
Reasons you might need to apply for a payday loan https://dawnforgovernor.org/reasons-you-might-need-to-apply-for-a-payday-loan/ Sat, 18 Dec 2021 08:00:00 +0000 https://dawnforgovernor.org/reasons-you-might-need-to-apply-for-a-payday-loan/ There are many reasons a person may need to apply for a payday loan. Payday loans, or short-term loans, are easily accessible loans that don’t require a particularly high credit score to get. If approved, they can be paid in hours. They are a favorite among borrowers, due to their convenience. Taking out a loan […]]]>

There are many reasons a person may need to apply for a payday loan.

Payday loans, or short-term loans, are easily accessible loans that don’t require a particularly high credit score to get. If approved, they can be paid in hours. They are a favorite among borrowers, due to their convenience.

Payday_Loan.png

Taking out a loan and not paying it back can hurt your credit score, so make sure you’re able to repay your loan if you’re approved, so borrow sensibly and for the right reasons.

This article will tell you some common reasons why people apply for payday loans:

Redundancy

Due to the COVID-19 pandemic, global unemployment is at an all-time high. Losing your job can be devastating, especially if you have a family and other responsibilities. Many people take out loans when they are laid off, to support them until they are financially stable again. According to a company that offers payday loans in Lacombe, Alberta, if you’ve used up all your money and have nowhere to go, a payday loan company might be your best option. That said, some lenders may not lend to you if you don’t have a job because you may not be able to repay the loan.

Debt Consolidation

Some people take out loans to pay off other loans or debts. If you are heavily in debt, you may consider taking out a loan to pay it off. This may sound counterproductive, but it’s actually a very good idea. While you’re still in debt, you can clear all of your current debt and then repay your loan on a flexible repayment schedule. If you’ve been owing money to a lender for a while and they’re threatening you with court, additional interest, and debt collectors, then a payday loan is definitely something to consider.

Friends and family

In difficult times, the first people called upon are his family and friends. Unfortunately, asking family and friends for money can be very uncomfortable and strain your relationship. Instead of borrowing from your relatives, you can take out a personal loan. Although you will have to pay interest, you will be able to avoid awkward conversations and make your loved ones uncomfortable.

Holiday loans

After a year of confinement, we all need a good vacation. If you want to give your family a vacation, but can’t afford to pay for it all at once, you might consider taking out a loan. Holiday loans are very common. If you’re planning on taking out a vacation loan, try to take out a loan and pay for your vacation well in advance. This will allow you to get your flights cheaper and allow you to take out a smaller loan. If you wait a few weeks before flying, you may need to take out a very large loan.

Building loan

In addition to relieving you of financial uncertainty, payday loans can also help you build your credit score. When you have bad credit, it can be difficult to get credit cards, mortgages, and other big loans. Payday loans, as we mentioned earlier, regularly accept people with bad credit. This means you can use a payday loan to boost your credit so you can borrow larger amounts from other lenders. It’s definitely worth building your credit, even if your credit is currently good. It can always be better.

Vehicle repairs

You can never predict when your car is going to break down. If you don’t have a lot of spare cash, you might be unable to pay to have your car repaired if it breaks down. A payday loan can ensure that you are covered should this be the case. Since payday loans are usually repaid the same day they apply, this means people can get their car fixed and back on the road quickly.

pay bills

If you haven’t been paid enough this month or have had to miss work, you can take out a payday loan to pay off your bills. Most people’s bills are under $300, which means you won’t have to pay much interest if you spread your payments over several months. This will allow you to pay your bills and avoid payment defaults. You should always pay your bills on time. If you don’t, your gas and energy suppliers may start charging interest to your account.

Paying_Bills.png

Mortgage repayments

As we mentioned earlier, sometimes people take out loans to pay off other loans. This often happens with mortgage repayments. If a person is unable to work for a month and has no savings, it may mean that they are unable to pay their mortgage. Taking out a loan can be a great solution to this. This can allow people to get their mortgage payments under control and avoid falling into default, which could lead to them losing their homes. Mortgage repayments can be very expensive, especially if mortgage rates are not fixed.

Medical emergencies

If you live in a county where health care is not paid for by the government, such as in the UK, a loan can be very useful in the event of a medical emergency. This is especially true if you don’t have health insurance. Medical bills can cost an absolute fortune. If a person is unable to pay their medical bills, it may mean they cannot get life-saving treatment. A payday loan can help pay your medical bills and ensure you get the treatment you need. Remember, though, that most payday loans are capped at around $10,000.

There are many reasons why people take out payday loans. In this article, we have barely scratched the surface. In the end, anything that lets you down and prevents you from paying for something you need is reason enough to take out a payday loan.

]]>
93% of payday loan borrowers regret taking their loan, survey finds https://dawnforgovernor.org/93-of-payday-loan-borrowers-regret-taking-their-loan-survey-finds/ Mon, 06 Dec 2021 08:00:00 +0000 https://dawnforgovernor.org/93-of-payday-loan-borrowers-regret-taking-their-loan-survey-finds/ article Payday loans can be a debt trap for borrowers who cannot afford to make payments. Here’s how you can pay off your payday loan balance before it’s sent to debt collectors. (Stock) Payday lenders prey on borrowers with bad credit who desperately need money, trapping them in a cycle of high-interest, hard-to-pay debt. The […]]]>

Payday loans can be a debt trap for borrowers who cannot afford to make payments. Here’s how you can pay off your payday loan balance before it’s sent to debt collectors. (Stock)

Payday lenders prey on borrowers with bad credit who desperately need money, trapping them in a cycle of high-interest, hard-to-pay debt.

The vast majority (93%) of borrowers regret taking out their personal loan, according to a new survey from DebtHammer. Only 1% of respondents said their financial situation improved after taking out a payday loan, while 84% said it got worse.

Payday loans allow consumers to borrow small, short-term cash loans without a credit check. But the typical repayment term is just two weeks, leading 4 out of 5 borrowers to take out a new personal loan to pay off their current debt, the Consumer Financial Protection Bureau (CFPB) reported.

It is possible to get out of payday loan debt without renewing your loan and incurring additional fees. Keep reading to learn how to break the cycle of payday borrowing, like consolidating debt with a personal loan. You can compare debt consolidation loan rates for free on Credible without affecting your credit score.

BEST SHORT-TERM LOANS: COMPARE YOUR OPTIONS

3 ways to get out of a personal loan

The average cost of a payday loan equates to an annual percentage rate (APR) of almost 400% – in other words, borrowers who keep renewing their payday loans could pay 4 times the amount they originally borrowed over the course of a year.

Payday lenders may trick you into thinking that renewing your loan is the only way to pay off your debt, but that’s not the case. Here are some alternative ways to break the payday loan cycle:

  1. Debt consolidation loans
  2. Extended payment plans
  3. credit advice

Learn about each repayment plan in the sections below.

3 THINGS YOU SHOULD NEVER DO WITH YOUR EMERGENCY FUND

1. Debt consolidation loans

Personal loans are lump-sum loans that are commonly used to consolidate higher interest rate debt, such as payday loans. They come with fixed interest rates and repayment terms, which means your monthly payments will be the same while you pay down your debt.

These debt consolidation loans are usually unsecured, meaning you don’t have to provide any assets as collateral. Because they are unsecured, lenders determine your interest rate and eligibility based on your credit score and debt-to-equity ratio.

Well-qualified borrowers can benefit from a low rate on a personal loan for debt consolidation. Personal loan rates are near all-time lows, according to the Federal Reserve, with an average of 9.39% in Q3 2021.

deb4b7fd-average-interest-rate-on-personal-loan.jpg

Some credit unions also offer small Alternative Payday Loans (PALs), which allow members to borrow up to $2,000 with an interest rate capped at 28%. However, these loans can be difficult to find because only a small portion of credit unions offer PALs.

You can see if you qualify for a debt consolidation loan on Credible with a soft credit check, which will not impact your credit score. Use a personal loan calculator to estimate your monthly payments to see if this option can help you get out of your payday loan debt.

CREDIT CARD INTEREST RATES ARE RISING NEARLY ALL TIME, FED DATA SHOWS

2. Extended Payment Plans

An Extended Payment Plan (EPP) allows payday loan borrowers to pay off their debt over a longer period than the typical two-week repayment term. Many states require payday lenders to offer PPE, so you’ll need to research your state laws to see if you qualify.

Some payday lenders may offer EPRs whether or not they are required by law to do so. The lenders belonging to the Community Financial Services Association of America (CFSA) are required to offer EPPs to borrowers, but other financial institutions may not offer this option.

HOW LONG DO NEGATIVE ITEMS STAY ON YOUR CREDIT REPORT?

3. Credit counseling

Non-profit credit counseling agencies offer free or low-cost services to borrowers who are struggling to manage their debt. One such service includes enrolling payday loan borrowers in a debt management plan (DMP).

As part of a DMP, a credit counselor will help you create a debt repayment budget and schedule. Credit counselors may be able to help you negotiate with payday lenders to lock in a lower interest rate or reduce the loan amount.

You can see a complete list of certified non-profit credit counselors on the justice department website. If you still have questions about payday loan debt relief, learn more about debt consolidation by contacting a knowledgeable loan officer on Credible.

BORROWERS WHO CONSOLIDATE CREDIT CARD DEBT CAN SAVE $2,000+ ON AVERAGE, DATA SHOWS

Do you have a financial question, but you don’t know who to contact? Email the Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.

]]>
What is a payday loan? https://dawnforgovernor.org/what-is-a-payday-loan/ Wed, 17 Nov 2021 08:00:00 +0000 https://dawnforgovernor.org/what-is-a-payday-loan/ Payday loans provide a quick influx of cash, but should be considered options of last resort. You could pay interest rates equivalent to 400% APR or more with payday loans. Alternatives include local nonprofits, churches, family members, and personal loans. Learn more about Personal Finance Insider loan coverage here. Loading Something is loading. Payday loans […]]]>
  • Payday loans provide a quick influx of cash, but should be considered options of last resort.
  • You could pay interest rates equivalent to 400% APR or more with payday loans.
  • Alternatives include local nonprofits, churches, family members, and personal loans.
  • Learn more about Personal Finance Insider loan coverage here.

Payday loans are touted as quick and helpful ways to get cash to cover an unexpected expense. However, payday lenders can often use predatory practices to trick borrowers into accepting loan terms that seriously damage their long-term financial health.

What is a personal loan?

A payday loan is a short-term, high-cost unsecured loan with principal as part of your next paycheque. Payday loans are often for small amounts of money, usually $500 or less. Payday loans provide immediate funds, have extremely high interest rates and are generally based on your income.

Payday loans are usually repaid within two to four weeks, and you can get them from a physical payday lender or online. Lenders usually don’t do a full credit check or consider your ability to repay the loan.

Different states have different laws regarding payday loans; some states ban payday loans entirely, while others cap the interest rates lenders can charge.

You might be put in a situation where you feel like you need to take out a high-interest loan to cover an expensive medical bill or rent check, but you should try to avoid payday loans whenever possible. possible.

With exorbitant interest rates, payday loans can end up costing more than you originally borrowed and can trap you in a cycle of debt. Additionally, payday lenders often target low-income minority communities and convince them to agree to confusing loan terms.

What are the disadvantages of a personal loan?

What are the alternatives to payday loans?

Local nonprofits, churches, family members, personal loans and even some credit cards are better options for emergency relief funds than payday loans, said Graciela Aponte- Diaz, director of federal campaigns at the Center for Responsible Lending.

“What we’ve seen in states that don’t have payday loans is that there are various resources to help people in times of emergency or hardship, but they’re marketed in states that have predatory lending,” Aponte-Diaz said.

Before you find yourself in a situation where you’re considering a payday loan, you might consider setting up an emergency fund to cover three to six months of living expenses, if possible.

You can find more personal loan alternatives to payday loans with our lists of the best small personal loans and the best personal loans for bad credit.

Consider all the alternatives you have to payday loans before deciding to get one, as they come with a lot of risk.

]]>
National Payday Loan Relief celebrates 15 years of transforming lives through payday loan consolidation https://dawnforgovernor.org/national-payday-loan-relief-celebrates-15-years-of-transforming-lives-through-payday-loan-consolidation/ Wed, 20 Oct 2021 07:00:00 +0000 https://dawnforgovernor.org/national-payday-loan-relief-celebrates-15-years-of-transforming-lives-through-payday-loan-consolidation/ OAKLAND PARK, Fla. (PRWEB) October 20, 2021 National Payday Loan Relief celebrates 15 years since they started the Payday Loan Consolidation Program. This program has helped thousands of Americans wallow in payday loan debt regain their financial freedom. Through this program, the company takes responsibility for settling an outstanding payday loan on behalf of the […]]]>

National Payday Loan Relief celebrates 15 years since they started the Payday Loan Consolidation Program. This program has helped thousands of Americans wallow in payday loan debt regain their financial freedom. Through this program, the company takes responsibility for settling an outstanding payday loan on behalf of the customer. This allows a customer to repay one or more loans simultaneously and leave a single loan with new terms and rates.

“We have been supporting our clients for fifteen years and helping them regain their financial freedom. We are delighted to take this step which would not have been possible without our valued customers. We are also grateful to all our partners for their unwavering support, and we promise to do even better in the future. Ours is a promise of excellence, and negotiating with lenders to find a solution is what we do best,” said Steven Harris, current president of National Payday Loan Relief.

Payday loans are a major contributor to the US economy, and most households have survived on a payday loan at some point. They are quick and convenient and are a good source of cash in an emergency. However, these loans are expensive and can lead the debtor into an endless cycle of debt. Some of the disadvantages of payday loans include:

  • They have ridiculously high interest rates
  • They don’t build your credit score
  • Due to their ease of application, customers are trapped in an endless cycle of debt
  • Lenders can access customers’ bank accounts and divert their money or freeze them

National Payday Loan Relief understands the deep waters of payday lending and helps clients get through it with the Payday Loan Consolidation Program. They do this by combining all loans owed by the customer and repaying them in one settlement. The client only has one loan to think about and can even obtain the new loan at a competitive interest rate. Additionally, the new loan may have a longer repayment period, giving the customer a grace period.

Payday loan consolidation is one of the most convenient ways to relieve debtors of the burden of multiple payday loans. Clients with multiple outstanding payday loans high interest rates combine loans and consolidate them into one loan. This process is known as loan consolidation. The process reduces the total amount payable for each loan and also reduces monthly payments.

“Payday loan consolidation is a very similar process to other debt consolidation programs. Rather than paying off multiple high-interest loans, you pay them off with funds loaned to you at a lower interest rate. While you’re technically borrowing again, you’re doing it at a much more manageable interest rate,” Harris explained.

A personal loan consolidation is the bridge that most debtors use to access their financial freedom. National Payday Loan Relief is rolling out this program in four easy steps. Once the customer has signed up for the program, the company will assign them a professional financial advisor to collect all the vital data regarding their payday loan. These include loan amount, interest, payment terms, income and other bills.

Second, the company addresses the lender and takes care of the communication between the lender and the debtor. This step also involves persuading the lender to waive any penalties and work out a flexible monthly plan.

The third step is a meeting between the client and the loan consolidation company to work out a monthly repayment plan. The plan is based on client income, payday loans and loan interest.

Finally, National Payday Loan Relief will walk the client hand in hand until the payday loan is settled. Clients are required to meet their monthly payments for the program to be successful.

National Payday Loan Relief is a payday loan consolidation company that helps clients regain financial freedom through – debt relief programs such as payday loan consolidation, debt settlement, credit card debt relief and financial advice. The company’s mission is to provide the best payday loan debt elimination option to consumers struggling with debt.

For more information visit their office at NW 10th Terrace, Oakland Park, FL 33309

Or call (888) 407-4521

Email: info@nationalpaydayloanrelief.com

Website: https://nationalpaydayloanrelief.com/

Share the article on social networks or by e-mail:

]]>
How to get out of a payday loan cycle for good – Hometown Station | KHTS FM 98.1 & AM 1220 — Santa Clarita Radio https://dawnforgovernor.org/how-to-get-out-of-a-payday-loan-cycle-for-good-hometown-station-khts-fm-98-1-am-1220-santa-clarita-radio/ Thu, 23 Sep 2021 07:00:00 +0000 https://dawnforgovernor.org/how-to-get-out-of-a-payday-loan-cycle-for-good-hometown-station-khts-fm-98-1-am-1220-santa-clarita-radio/ Taking on too much debt can lock you into a payday loan cycle, which can be difficult to overcome. If you face this situation, there are many ways to solve your problems to free yourself from your debts. Here are some suggestions you should check out. Ultimate Guide to Breaking the Payday Loan Cycle Payday […]]]>

Taking on too much debt can lock you into a payday loan cycle, which can be difficult to overcome. If you face this situation, there are many ways to solve your problems to free yourself from your debts. Here are some suggestions you should check out.

Ultimate Guide to Breaking the Payday Loan Cycle

Payday loans give you an easy way to pay off your debts when you need money fast. However, if you don’t exercise control when you borrow, debt can spiral out of control and lead to a cycle of payday loan debt. This happens when you are forced to keep borrowing to pay off your existing debt. When you apply for a payday loan, your paycheck serves as collateral, so it doesn’t matter if you have bad credit. The lender has the authority to withdraw from your bank account when you receive your next paycheck.

The lender charges a fee to process the amount, often 15% to 30% of the amount borrowed. This interest can accumulate and could attract an APR of over 400%. If you use your paycheck to pay for other expenses, you risk delaying your payday loan repayment, which will lead to a payday loan vicious cycle. Here are some ideas you could use if you’re stuck in a payday loan cycle.

Identify the underlying problem

When looking for a way out of the payday loan cycle, the first thing to do is review your life for the underlying problem. By itself, the loan is not the main factor that you are in a financial crisis. The payday loan debt cycle is just one symptom of a problem you need to address. It is essential that you examine yourself to find out what drives you to take out this type of loan in the first place. Are you held back by other debts?

Is it difficult to budget and save money for emergencies and annual expenses? Or is the problem due to an addiction that has kept you in a paycheck to paycheck life cycle? Once you identify the main issues, you can seek professional help, as sometimes you may not have the skills to fix the problem yourself.

Track and identify your expenses

Before developing a plan to manage your payday loan cycle, it’s important to understand your actual monthly expenses. This assessment will tell you where you can find opportunities to change your expenses and how much money you need to set aside to manage your annual and seasonal expenses. You can keep track of your expenses by keeping a small notebook with you, which you can use to record your expenses.

Also enter your receipts on a spreadsheet or use an app to manage your expenses on your mobile device. Whichever option you choose, you need to be honest with yourself. Build a plan with accurate information and you will break the cycle of payday loans.

Create a personal budget

hold money

Another way to understand how to manage payday loan debt is to create a realistic personal budget. Once you’ve completed the first two steps, a budget will help you better manage your seasonal expenses. With this, you can plan how to pay off your payday loan debts. For effective budgeting, consider these simple steps:

  1. Identify your income and expenses. Know how much you earn and where the money goes.
  2. Separate needs and wants. Highlight the items you can do without and also list all the necessities.
  3. Design your budget. Balance the budget to account for everything you want to pay.
  4. Implement your plan. Match expenses when you receive income. Decide what you will use your paycheck for.
  5. Highlight seasonal expenses, such as school expenses and subscriptions. Set funds aside for these expenses to ensure you don’t go into debt to pay for them.

Repay your payday loans

The eventual solution to ending the cycle of payday loans is to pay off your payday loans. It’s important to make tough short-term decisions that will help you settle your debts. Once you have paid off the debt, you can review your expenses and budget to maintain your free status. Here are the steps you can use to successfully negotiate debt repayment for your payday loans.

  • Calculate how much you can afford to pay for payday loans each month. Check what you have left after paying your expenses.
  • Pay each payday loan company a share of available funds each month to demonstrate that you are prepared to honor your agreement.
  • Before talking to company representatives, put a stop on payments on pre-authorized debits to prevent them from cashing out and leaving you with no money for other expenses.
  • Before the loan is due, alert companies that you are unable to pay as agreed, so ask to speak with someone who can help you get a payment plan.
  • Explain to the representatives that you intend to get out of debt.
  • Share details about your current payday loans and let them know you’ve looked at your budget and determined you can only afford to pay a certain amount.
  • Don’t take out a new payday loan, as this could push you further into debt, so first maintain a firm stance to settle your current loan.
  • Once you have reached an agreement, maintain your commitment to repay all debts.

Debt Consolidation

While this is only recommended if you can find a lender willing to give you lower interest, it can be an ideal way to get yourself out of payday loan debt. You borrow the cheapest loan and use the money to pay off outstanding debt. After settling payday loans, you can now focus on paying off the loan you applied for to get out of debt.

Conclusion

Debt can impact your mental and financial well-being. It’s important to make sure you resolve your situation as soon as possible to break the cycle of payday loans. Once you’ve paid off your debts, you’ll feel better overall. Learn new financial skills like budgeting to ensure you don’t go into debt in the future.

Do you have any current advice? Call us at (661) 298-1220 or email newstip@hometownstation.com. Don’t miss a thing. Get the latest KHTS Santa Clarita News alerts straight to your inbox. Report a typo or error, email Corrections@hometownstation.com

KHTS FM 98.1 and AM 1220 is Santa Clarita’s only local radio station. KHTS mixes a combination of news, traffic, sports and features with your favorite adult contemporary hits. Santa Clarita News and Features are broadcast throughout the day on our airwaves, on our website and on various social media platforms. Our KHTS award-winning daily newsletters are now read daily by over 34,000 residents. A vibrant member of the Santa Clarita community, the KHTS broadcast signal reaches the entire Santa Clarita Valley and parts of the high desert communities located in Antelope Valley. The station broadcasts its talk shows on the web, reaching potentially global audiences. Follow @KHTSRadio on Facebook, Twitter, and instagram.

KHTS AM 1220 & FM 98.1 - Santa Clarita Radio - Santa Clarita News

]]>
Afterpay-Westpac ‘Retro’ painted with payday loan brush https://dawnforgovernor.org/afterpay-westpac-retro-painted-with-payday-loan-brush/ Wed, 22 Sep 2021 07:00:00 +0000 https://dawnforgovernor.org/afterpay-westpac-retro-painted-with-payday-loan-brush/ Afterpay’s new ‘Retro’ feature retroactively splits a payment into four instalments, which critics say is no better than a payday loan or payday advance. Announced on Wednesday and slated to launch next month, Afterpay’s collaboration with Westpac retroactively splits a payment into four installments, based on a transaction in the past 72 hours. The Retro […]]]>

Afterpay’s new ‘Retro’ feature retroactively splits a payment into four instalments, which critics say is no better than a payday loan or payday advance.

Announced on Wednesday and slated to launch next month, Afterpay’s collaboration with Westpac retroactively splits a payment into four installments, based on a transaction in the past 72 hours.

The Retro feature effectively means that up to $200 is credited to customer accounts.

Users must be a “Money by Afterpay” customer, and while there is no additional charge to use the product, the usual Afterpay late fees apply.

Afterpay Vice President Lee Hatton said the new feature gives consumers an alternative to high-interest payday advance or “pay-as-you-go” apps.

However, Gerard Brody, CEO of Consumer Action Law Center, told Savings.com.au the new feature is “just another credit deal”.

“This … underscores why we need national credit laws to apply to buy now and pay later, including responsible lending laws,” Brody said.

The collaboration with Westpac on the new Money by Afterpay application – where the “Retro” function is located – effectively marks the major bank’s transaction account.

Payments expert Bradford Kelly told Savings.com.au he was surprised Westpac was collaborating on such a move.

“Where’s the regulator? Asleep at the wheel. If that doesn’t get regulators’ attention, nothing will,” Mr Kelly said.

“I am shocked that any bank, let alone Westpac, would allow itself to be associated with such a blatant product.

“Customers who need $200 – and let’s face it, it’s not about budget – are at the end of the road when it comes to credit.

“Why go for the bottom of the barrel, when the gutter is right over there?”

An Afterpay spokesperson told Savings.com.au that Retro’s intended use is for budgeting, not lending.

“The retro is part of a customer’s overall Afterpay BNPL limit, not something more,” they said.

“Most importantly, Retro is available for purchases that customers have already made with their Money by Afterpay debit card.

“Like Afterpay, Retro is tied to purchases and is not a cash loan.

“Retro costs nothing to Money by Afterpay customers, provided they pay on time.”

Why does this happen?

Following a less-than-stellar earnings report and a mixed reaction to Square’s takeover, experts say Afterpay’s move is to acquire customers quickly.

Toby Blyth, a partner at law firm Colin Biggers & Paisley, told Savings.com.au the alliance between Afterpay and Westpac was for marketing purposes and ease of scale.

“This is a marketing alliance with Westpac to bring a new product to Westpac’s own customer base and to scale Afterpay, given market concerns about Afterpay’s earnings and viability in the larger market basin. internationally,” Mr Blyth said.

However, Mr Blyth also questioned the direct monetary benefit to Afterpay.

“It cannot charge the merchant, who has already paid merchant fees on the original debit card transaction that is actually being refinanced,” he said.

“Westpac may be paying what is effectively an introducer fee to Afterpay, and recovering the costs via late fees.

“Banks have extensive experience with the call effect of ’55 days interest free’ and the like.”

Former Citi and Diners Club executive Grant Halverson also explained the reasons behind the decision.

“BNPL clearly lends or else why does Afterpay have bad debts or collection charges of $200 million – the largest expense at 24% of revenue and more than 1% of sales?” Mr Halverson told Savings.com.au.

“Aftermarket BNPL has been around for years and is not new – it is very popular in Asia, Latin America and Africa.”

Mr. Kelly was candid in his assessment of the Retro movement.

“They have exhausted their customer growth in Australia and now need to go even deeper into the risky and dashing end of the credit market,” he said.

Global Context

Just last week UK BNPL provider Curve launched “Flex” – a similar premise to Retro – which retroactively applies BNPL payouts to transactions.

However, Curve goes a step further and allows customers to “convert” transactions made up to a year ago into “free” or “low interest” loans, according to its CEO Shachar Bialick.

“Curve Flex is almost certainly the most flexible credit solution on the market,” Bialick said.

“Being able to go back in time and pay later will forever change the way UK customers think about managing their personal finances and cash flow.”

Since September 2020, Flex beta customers have converted around 7,000 transactions into what Curve openly calls “installment loans”, worth £1 million ($1.89 million AUD).

See also: Would credit regulation kill BNPL?

Is a credit crackdown coming?

BNPL is currently not subject to the National Consumer Credit Protection Act of 2009 (NCCP) as the NCCP does not apply to short-term credit of less than 62 days.

A Senate investigation in September 2020 also concluded that BNPL suppliers could self-regulate.

However, that could all change next month as regulators overhaul the credit framework, according to Halverson.

“ASIC has a new design and distribution obligation [DDO] powers in October – will they use them, who knows?” he said.

“They certainly should because it’s not just the BNPL – there is now a proliferation of ‘copycats’ taking this loophole to extremes.

“The net result is that more young consumers have financial problems.”

DDO powers give ASIC – the Australian Securities and Investments Commission – the power to enforce new agreements, including stop orders and exemption powers.

The new powers could extend to any financial product requiring a product declaration, as well as credit products covered by the NCCP and short-term contracts not covered by the NCCP.


Photo by Dan Gold on Unsplash

]]>
Loan consolidation company relieving Americans of payday loan debt amid Covid-19 pandemic https://dawnforgovernor.org/loan-consolidation-company-relieving-americans-of-payday-loan-debt-amid-covid-19-pandemic/ Sat, 14 Aug 2021 07:00:00 +0000 https://dawnforgovernor.org/loan-consolidation-company-relieving-americans-of-payday-loan-debt-amid-covid-19-pandemic/ Oakland Park, FL (PRWEB) August 14, 2021 Covid-19 hit the world by surprise in March 2020, and since then life has taken a dark turn. This pandemic has grabbed the world by the neck, from the loss of families and friends to the virus, to job losses and business failures. With businesses closing and citizens […]]]>

Covid-19 hit the world by surprise in March 2020, and since then life has taken a dark turn. This pandemic has grabbed the world by the neck, from the loss of families and friends to the virus, to job losses and business failures. With businesses closing and citizens facing pay cuts, payday loans have become the order of the day.

Payday loans are advances that lenders give to individuals, which they repay when they receive their paycheck. They are suitable to cover medical emergencies, accidents and unexpected bills. But they can be a trap if you borrow more money than you can afford. Defaulting on these loans comes with exorbitant rollover fees and crazy interest.

These loans are attractive and tempting. Creditors know how to target consumers’ weak points, leaving them no choice but to take them. They use persuasive language to make the deal too good to resist. Here are some of the reasons payday loans are attractive:

  • They have a high probability of approval
  • Lenders offer adjustable amounts of money
  • Payday loans are granted quickly in case of emergency
  • When used well, payday loans can be a reliable way to supplement your sources of income.

Although it is sometimes unavoidable to borrow these loans, consumers should avoid them like the plague. They have higher interest rates than regular bank loans. “Some companies will seduce you with this offer and destroy you with the interest rate. If you have fallen into this trap, do not despair, there is still hope,” advises National Payday Loan Relief.

Most people know the drawbacks of these payday loans, but they borrow anyway. This is because they seem like an instant helper. They are convenient because they do not require guarantors or credit checks. Moreover, they do not feel like a burden. Some people feel uncomfortable borrowing from family and friends, so they opt for payday loans.

“A lot of people like the payday loan because of the self-awareness; you know that uncomfortable feeling that comes with borrowing from family and friends? Payday loans are not so shameful,” noted the NPDLR (National Payday Loan Relief). It is advisable to avoid payday loans. Instead, consider other alternatives, such as asking friends and family for help. If the payday loan is unavoidable, stick to one lender.

“Payday loans tend to be high risk, but depending on the situation, it can help get through the circumstances. The bottom line about payday loans is that you try to find an alternative. If you must use a payday loan, try to limit the amount and only borrow what you can afford to pay with your next paycheck, and of course still have enough left over to make it to the next payday. “, advises the NPDLR.

So what happens after you get stuck in payday loan cycle debt? Are you accepting defeat and living a miserable life paycheck to paycheck?

There is a way to get out of payday loan debt. The NPDLR has developed various initiatives that help you clear your debts in less time and even at lower rates. First, they have a payday loan consolidation program which allows you to repay several loans simultaneously with a single loan.

“Debt consolidation is a service offered by loan relief service providers to facilitate the refinancing of debt by taking out a loan from the consolidator and using it to pay off multiple loans owed to other debtors”, explains the NPDLR. This program is what people struggling with debt from multiple creditors need to regain their financial freedom. This shortens the payback period and the final amount you repay.

“Debt consolidation is a personal financial relief because it allows you to pay off multiple debts simultaneously using a single low-interest loan. It also relieves you of nagging phone calls from lenders, among other benefits. Ask how does this loan consolidation program work? It’s pretty self-explanatory. The consolidator takes full responsibility for debt clearance, such as negotiating better rates, payment schedule, and so on.

“The consolidation company will take care of the rates, fees, renegotiation of terms and all that is expected of you is to pay off your debt in friendly monthly installments through the loan consolidation company.” Why pay a consolidation company to do all of this when you can negotiate your way to paying low interest? To the extent that you can do these things on your own, a consolidator familiar with payday loans and the rules governing lending institutions has a better chance than a layman. “Getting such an agreement can be difficult if you try to renegotiate your loan with the creditor yourself,” warns the NPDLR.

There is another solution for consumers with multiple payday loan debts; debt settlement. You use this method as a last resort, after trying other means to settle your payday debts. Here, you hire a debt management professional or a legal firm to advise you on the options available. Negotiating debt forgiveness and other settlement options on your own is not easy; that’s why you need to seek an expert. “While it is entirely possible to do this yourself whenever dealing with complex legal and financial matters, it is always recommended that you contact a lawyer or professional company that has experience in dealing with these types of questions,” advises the NPDLR. .

“Once you’ve negotiated an acceptable arrangement that both parties have signed off on, you can finalize the deal. Sometimes this may include the cancellation of the entire debt, but more often it will be a payment plan for a partial sum of the original amount. It’s a good way to save money while reducing monthly payments to a more manageable level. » Lower monthly payments leave room to save more. Saving money is a habit we should all adopt because payday loan debt interferes with this crucial habit. The money saved gives us hope for a better future and the ability to meet a need should it arise.

“Money is a guarantee that we can have what we want in the future. Although it does not need anything at the moment, it ensures the possibility of satisfying a new desire when it arises”, said Aristotle One of the best-selling authors on personal finance, Suzie Orman, says that you need to address the root cause of your financial problems to gain financial freedom, which is why talking to an expert is essential for getting financial freedom. legal and financial advice “The only way to permanently take control of your financial life is to dig deep and get to the root of the problem,” wrote Orman, author of more than 25 million books on finance.

Payday loans top the list of root causes of financial hardship for most Americans. When you get the first advance, you pay it with your next salary. If the remaining amount cannot support your lifestyle until the next payday, you borrow another loan. This cycle can’t save you a penny, and your dream of financial freedom is delayed another day. The main cause of wallowing in debt is a lack of budgeting, which leads to overspending on unnecessary things. Getting financial advice saves you from falling back into the same trap by teaching you better financial habits and comprehensive financial advice.

“As a debt settlement company, NPDLR feels compelled, as our duty, to inform and educate our clients on how to avoid making the same mistake twice. financial and credit debt to anyone who wants to learn and improve every day.Financial credit counseling will give you insight on how to improve your finances and credit score in your future spending,” noted The NPDLR. The financial advisor can even help you with other alternatives to pay off your payday loans, such as mortgage refinancing. This is a very fragile subject that requires expert advice to save money If you go into it blindly, you risk getting into more debt.

“When you refinance your loan, you will want to get a better deal. When deciding to consider how refinance my mortgage, you’ll want to make sure you’re making the right decisions for this,” advises NPDLR.

There are other alternatives to turn to when payday loan debt spirals out of control. These are:

  • Financial Debt Management Services
  • Filing for bankruptcy
  • Financial debts and credit card advice
  • Payday Loan Debt Settlement

NPDLR offers other lending and credit management services to help customers take charge of their financial well-being. These include:

  • Debt repayment calculator that gives customers an overview of their accumulated debts and payment schedule
  • Credit card debt relief program to help credit card debtors repay their credit card loans
  • Payday loans map to help customers find payday loans and debtor protection areas in their state
  • Debt Settlement Agreement Template that clients can use to draft their Debt Settlement Agreements

About National Payday Loan Relief

NPDLR is a debt settlement company recognized across the United States for helping get out of payday loan debt. They help you recover from payday loan debt with their loan relief and consolidation program. Their core values ​​include Support, Reliability, Knowledge, and Negotiators. NPDLR’s mission is to be an efficient and reliable payday loan relief service provider, helping Americans in every state. They also pride themselves on over 20 years of professional services, with qualified financial experts and lawyers.

For more information on National Payday Loan Relief and Debt Consolidation Services, visit their website or contact them by phone or text at (888) 407-4521 or email: info@ nationalpaydayloanrelief.com. Their physical address is 3221 NW 10th Terrace, Oakland Park, FL 33309.

]]>
How to get out of payday loan debt now https://dawnforgovernor.org/how-to-get-out-of-payday-loan-debt-now/ Tue, 08 Jun 2021 17:22:05 +0000 https://dawnforgovernor.org/how-to-get-out-of-payday-loan-debt-now/ The key is to shop around and find a loan at the most affordable rate and with the most favorable terms possible. If you are able to get a personal loan, you can significantly reduce the interest rate and borrowing costs you pay compared to payday loans. More of your money will go towards paying […]]]>

The key is to shop around and find a loan at the most affordable rate and with the most favorable terms possible.

If you are able to get a personal loan, you can significantly reduce the interest rate and borrowing costs you pay compared to payday loans. More of your money will go towards paying off your main balance, so you can actually reduce your debts.

And personal loans come with fixed repayment schedules that usually give you several years to pay off your loan. This extended repayment period can make your monthly payments more affordable. This way, you won’t have to borrow more money when your paycheck won’t stretch far enough to pay for everything you need plus cover expenses.

You can also use other types of loans, such as home equity loans, to consolidate your debt, but these can take longer to qualify, come with higher closing costs, and put your house at risk as collateral.

Commit to no longer borrowing

Once you’ve borrowed with a payday loan, the high fees and short repayment time associated with your loan can sometimes make it difficult to stop borrowing. In fact, many people end up taking out one payday loan after another or even taking out multiple payday loans at the same time. This can quickly lead to financial disaster when a large portion of your salary is promised to lenders before you even receive it.

Unfortunately, the bottom line is that you can’t borrow to get out of debt, especially with high-interest loans like payday loans. We must break the cycle by no longer taking credit. However, this can be very difficult if your paycheck doesn’t stretch far enough due to payments you’re already obligated to make.

The best way to make sure you don’t borrow anymore is to make a detailed budget that you live on. Figure out what your income is each month and add up all your essential and discretionary expenses. You will need to ensure that your outgoings and outgoings do not exceed your income. If they do, you will have to keep borrowing forever and never be able to get out of payday loan debt.

If your income doesn’t cover your expenses, start looking for places to reduce your expenses. That might mean cutting coupons to reduce your food budget or finding a roommate to make rent more affordable. If you have a drastic shortage in the amount of cash available to cover expenses, you may really need to cut expenses to the bone – but it is necessary to do so at least in the short term so that you can get out of your debts.

If you really want to pay off your debt as soon as possible, making extra payments is essential. When you make additional payments, it will cost you less in total to pay off your debt, as well as reduce the time it takes to become debt free.

Paying extra on your loan will reduce the balance faster because all the extra money will go towards the principal. And the more you reduce your balance, the less interest you will pay since interest is charged on a lower amount.

You can make extra payments by living on a prudent budget that keeps expenses down. You can also seek additional cash to increase your payout. To find extra money to pay off your payday loans, consider:

  • Doing overtime
  • Work a side gig
  • Selling things you don’t need

Consider bankruptcy

Sometimes you might not be able to agree on a repayment plan that makes payday loans affordable for you, and you might not be able to get a new loan that makes paying off payday loans affordable.

If you find yourself unable to make payments while covering your essential monthly expenses, you may have no choice but to try to pay off your debt or file for bankruptcy.

Debt settlement involves making an agreement with creditors to repay less than the total owed and have the rest of your debt forgiven. Debt settlement lawyers or debt settlement companies can negotiate this type of agreement with payday lenders, but you will have to pay a fee.

You can also try to negotiate this type of agreement yourself by informing the payday lenders that you are unable to pay as promised. If you can offer a lump sum payment of a portion of your debt in exchange for canceling your debt balance, this approach often works best.

Just be aware that lenders generally won’t accept a settlement unless you’ve missed payments – and debt settlement hurts your credit score. You will also want to get your agreement in writing before you pay anything.

If debt settlement isn’t working and payments are unaffordable, bankruptcy may be your only answer. Bankruptcy will allow you to discharge eligible debts, including payday loan debts.

The process by which debts are discharged varies depending on whether you are filing Chapter 7 or Chapter 13. Chapter 7 requires you to assign certain assets to the bankruptcy estate so that creditors can be partially paid. Chapter 13 requires you to make payments on a three to five year payment plan before the remaining debt balance is forgiven.

Bankruptcy hurts your credit score, but it can get you out of a deep hole if you have a lot of payday loans and other debts that you can’t afford to pay. Once your debt has been discharged and is no longer collectible, you can begin to rebuild your credit. This can be done over time by living within your means and getting a secure credit card that you pay on time to develop a positive payment history.

How can you repay your payday loan?

Ultimately, there is no one right approach to getting payday loan debt paid off.

Entering into a repayment plan makes sense if your state requires lenders to authorize them or if your lenders are willing to work with you. Taking out a new loan at a lower rate to pay off payday loan debt can work if you are able to qualify or if you have a loved one who will allow you to borrow. It is possible to pay extra on your loans if you can work more or sell additional items to get more money.

But if none of these options work for you, debt settlement or bankruptcy may be the only way to finally free yourself from your payday loan debt.

Carefully consider each possible option, weigh the pros and cons, determine which solutions are viable, and then act. Start working on your approach today because you absolutely want to get your payday loans paid off ASAP before they cost you even more money.

]]>