Consolidating That Crushing Payday Loan Debt
Last week we touched on payday loan debt consolidation and how a debt management program, also know as consumer credit counseling plan, can quickly rid you of these barbaric interest loans. Credit Counseling agencies help consumers in many ways with debt. One of which is their help with debt management programs. For those who cannot qualify for a debt consolidation loan, instead CCCS organizations work with lenders and offer consumers modified terms on their existing loans. Each lenders’ new payment amounts are then consolidated into one low payment.
The benefits realized vary with each lender and the types of accounts. Paying credit card debt and medical bills paid through a debt management program varies a bit compared to using a DMP for payday loan debt consolidation.
First, lenders do not have to offer their account holders any repayment program. We will therefore cover what is a general rule of thumb for payday loan debt consolidation, rather than any guarantees or expectations.
Payday Loan Debt Consolidation through Consumer Credit Counseling
First, look for a credit counseling agency approved to work with payday loan lenders. Generally they can enroll customers on a program that can cut their total monthly payments sometimes by half or more. All participating lender will have specific terms to approve a debt management repayment program. These terms vary but most often consumers can expect these or similar modifications to their loans.
- Loan extensions to around 10 months.
- One monthly payment
- Interest greatly reduced or eliminated, especially on aged loans
- no collection activity or negative credit reporting
If you have multiple payday loans charging sky high interest, talk to a credit counseling agency such as BSI. Lenders who offer these plans do usually require payback through a credit counseling partner. If approved and they follow the model above, a consumer can now payback the loans at a rate of about 10% of the starting balance per month and be done with them in about a year. What seemed like a vicious cycle with no end in sight now can be manageable.
Let BSI offer you a no obligation free quote and consultation to see if you qualify.