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Information on Payday Loan Consolidation - The Bills.com Blog
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Information on Payday Loan Consolidation
Wednesday, Feb 13, 2008
Question: Can you get debt consolidation for payday loans?
Answer: I think the only way for you to consolidate payday loans is if you apply for another personal loan and use the funds to pay off the payday loans.Payday loans, often called "cash advance loans", "check advance loans", or "deferred deposit check loans", are a frequent pitfall for consumers. A fee anywhere from $15-$30 per $100 borrowed is charged for an average loan of $300. With rates so high and the term of the loan so short, there's no wonder that a very high percentage of these loans are rolled over by the borrower again and again so that the accumulated fees equal an effective annualized interest rate of 390% to 780% APR depending on the number of times the principal is rolled over.
There are eight states whose payday loan regulating statutes require lenders to set up an installment repayment plan if an account reaches the maximum number of rollovers allowed by law and the debtor declares that he/she is unable to pay the balance due. Check out the payday loan information from the Consumer Federation of America where you will be able to
read all about these loans and the various state attempts to regulate them. Follow the "state information" link to find out the specific regulations for payday lenders in your state, and if you live in one of the eight states requiring installment payments. If your state does require repayment plans, and the lender still won't accept payments, call your state regulator of payday loans, usually an assistant Attorney General, and complain. You should get the results you want after the Attorney General's office becomes involved.
If you are not in one of those states, you may want to consider simply making payments to the lender of whatever you can afford to pay down the balance
If you are not in one of those states, you may want to consider simply making payments to the lender of whatever you can afford to pay down the balance
of the loan over time. In most states, the rollover limit will soon be reached, and the interest rate the lender can charge will be capped by state law. If the lender will not accept your payments, simply put what you can afford aside each month until you have enough money to either pay off the loan or to offer a settlement. Read up on the regulations in your state to find the best strategy for your situation.
Also, it may help to know more about negotiating and settling debts with creditors .
You can read more about payday loans on our payday loan information page .
Hopefully, one of the strategies I have discussed above will help you resolve these payday loans, and help you Find. Learn Save.
Best of luck,
Bill
www.bills.com/blog/
Also, it may help to know more about negotiating and settling debts with creditors .
You can read more about payday loans on our payday loan information page .
Hopefully, one of the strategies I have discussed above will help you resolve these payday loans, and help you Find. Learn Save.
Best of luck,
Bill
www.bills.com/blog/
Also, make sure to get a free financial health check-up with Bills IQ!
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