Do you have multiple payday loans? If so, you probably know how difficult it is trying to keep up with the multiple payments every month. To make your work easier, you can consolidate the debts so that you only have a single payment to make every month. Having a single payment will make it easy for you to plan your payments and hence repair your credit score over time. Check out this link to get started.
There are a number of steps you should follow when looking to consolidate your payday loans. These are:
Know How Much Debt You Owe
Find out the amount of debt you owe from lenders. You may be paying for debts that the lenders are not legally allowed to collect. In most states, lenders are only allowed to collect debt if it has been on for the last 7 years. If the debt has been outstanding for more than 7 years, it is automatically squashed by the law.
Contact your lenders and ask about the loans you have. Check to confirm that all the loans indicated are still valid.
Notify the Lender
When you are sure of the debts you are legally obligated to pay, contact the lenders and inform them of your intention to consolidate them. Consolidating will make it easier for you to pay back the loan. Consolidation simply involves taking a new loan to pay off all your existing debt. When your debt has been paid, this means you will only have one debt to deal with; the consolidation loan.
Keep in mind that there may be some financing fees to be paid as part of the consolidation. This is one of the reasons you should consider all your options before opting for consolidation. Sometimes, you may find that it’s cheaper to simply pay off each loan on its due date.
Choose Third Party Consolidation
The best option to choose is third party consolidation. However, this option is usually the hardest. Here, you will have to find a local lender in your area that offers consolidation loans. These lenders are typically not “payday” lenders. They have more structured forms and lower loan fees. When you move your payday dents to a traditional lander, you can end up saving money.
The major challenge with this option is finding a traditional lender to finance you. Most of the lenders are wary of people with payday loans. The best way to approach such lender is to drastically reduce your payday debt balances before applying for a loan. Get more info at this website.