Applying for a payday loan may be the best option you have when you need cash quick. However, when you cannot pay back the loan on time and start depending on them, your credit score can greatly suffer. If you have many payday loans, you can consolidate them to get some financial relief. You may also want to consolidate the load to reduce the amount of dent you must keep track of every month. Click here to get started.
Consolidating your loans does not mean you will reduce the principal sum you owe on the debts. However, you are likely to be able to remove a portion of the fees you are supposed to pay and in turn streamline your payment process. Before you decide to consolidate your payday loans, it’s important to evaluate all possible solutions. You should consider you current debt and choose the consolidation options that will be most beneficial.
Validate Your Debts
The first step to consolidating your payday loans is to confirm how much debt you currently owe. Apart from this, find out how many are still active. You may think you have a lot of debt but sometimes, the lender may have no legal right to continue collecting. In most states, lenders are not allowed to continue pursuing payday loan debts from five to seven years. If your loan has been unpaid for this duration of time, you have no legal obligation to pay back the lender.
The best thing would to be contact the various lenders whom you think you owe and ask for payoff quotes for your current payday loans. Check which loans are still lawful and which ones are inactive under law. Apart from this, find out how much you owe in total.
Check Payday Lending Laws
You should also check the laws governing payday loan lending in your state. There are very strict rules that payday loan lenders must follow. For example, while a lender may charge late payment fees, the fees are capped in most states. Apart from this, it is illegal for a lender to extend a second loan when there is still an outstanding one. If you have multiple payday loans from the same lender, only one of them is valid at a time. You can notify the consumer protection agency in your state to have your loan cancelled.
The above are the steps you should follow when looking to consolidate your payday loans. Visit website to read more about this.