Published on May 17th, 2018 | by Sumit Bhowal0
The Pros and Cons of Payday Loan Debt and National Payday Loan Relief Programs
Payday loans are cash advances based on your salary. Most people get payday loans because they have an emergency or are going through hard times. It’s a relatively easy and instantaneous loan to get requiring little paperwork or credit history. The national payday loan relief programs work to your benefit if you know how to manage the debt by following the terms and conditions of your loans.
There are positive and negative consequences of cash advance loans. The following information will help you understand the stakes and benefits of a payday loan.
- Just about anyone will qualify for a cash advance loan because the loan is not based on credit reports or their scores. For those who have bad credit, a payday loan is a sure thing.
- Cash advance, or payday loans, help you recover from or meet emergencies such as auto repairs, weather and climate-related emergencies, illnesses, and just about any unexpected additional expense that life presents you which is not within your budget.
- Nowadays, you don’t need to visit a payday loan store to apply for a payday loan. You can apply online or by phone easily.
- Payday loans are approved or denied instantly, and you will have the money available in your bank account within 24 hours.
- A payday loan gives you the instant cash liquidity that you need to cover your emergency or unexpected expenses. But payday loans require that you repay the lender on your next payday. A percentage of the cash advance is not what the lender expects. They want the whole amount when it is due: next payday. However, if you cannot pay the total amount due on your next payday, a rollover will give you the opportunity to cover the amount on the following payday. The only problem with this is that you will have to comply with additional financing fees every time you get a rollover. Sometimes this puts you in deeper waters than you expected in a cycle of debt without relief.
- Because payday loans are instantly approved at the time you need them, their fees and interests are ridiculously high. You will pay almost $15 or more for every $100 that you borrow.
- The Annual Percentage Rate (APR) of a cash advance loan can be as high as 500%, but you are only borrowing the sum for 15 days. That’s definitely one of the negative aspects of a payday loan.
- Rollovers can cause you to increase the amount you owe the lender by many times more and have to pay higher interest.
- Reading carefully and asking questions to clarify the terms and conditions of your payday loan will avoid future surprises. Going into a payday loan blindly is only going to make things worse for you. Know what you are getting into.
- Another negative aspect of a payday loan is that you can only borrow small amounts from $100 to $1000.
Finding a reputable, well-established financial institution devoted to payday loans is of the utmost importance to consumers since not all payday loans are the same. Do your homework and don’t sign any binding documents before reading the terms and conditions very carefully. However, making good on the payday loan on the date your payment is due will avoid future financial stress.
Payday loan debt relief programs can help you get out of the vicious rollover cycle. Here is how they work.
Payday Loan Relief Programs can help you climb out from under the pressure of payday loans through a quick and aggressive process. They may even get you a break on how much you owe.
Consolidating your payday loans through a national payday loan debt relief program will lower your monthly payments and set up an FDIC insured bank account in your name from which to draw the funds, if necessary. Professional negotiators will reach out to your lenders and make a new deal on your loan for you. Your loans may be settled for much less than you owe. But you must have the funds available to negotiate. The national payday loan relief program will continue to work on your behalf settling every debt you have until you are debt free.
A national payday loan relief program will settle the debt with your lenders for less and save you a substantial amount of money. In this way, you will eliminate the high-interest rates and penalty fees associated with payday loan debt. Debt relief typically occurs because the consolidation process takes into account the sum of money you initially owed and eliminates the costs and interest accrued after the rollover or default.
Consolidating payday loans depends on how much money you owe when you enroll in the program. The process can take anywhere between 3 to 9 months, and the two most important goals of a debt relief program are: to attain a monthly payment within your budget and eliminate the total debt as soon as possible.