Payday loans or short term loans, also known as the fast cash loans, are the ones which you may be able to get without a credit check. So, getting payday loans is easy. But as these are given without credit checks, you will have to pay against high interest rate. This can create problems for you later. Thus, it is said to better avoid getting payday loans. But, if you already are in debt due to several payday loans, you can opt for debt consolidation and the process is same as credit card consolidation. Check things before payday loan consolidation.
Before you consolidate your payday loans, it is important for you to consider some things about the payday loans. Payday lending has been made illegal in many states and so you may not need to pay more than what you had borrowed. You will be able to free yourself of the payday loan only by paying back the principal amount that you had borrowed from the lender.
The payday lending laws are different in different states. Thus, it is important for you to find out if payday lending is legal in your state. Even if payday lending is legal in your state, some payday lending companies are not licensed to do business in your state and neither are they good companies.
If a payday lending company isn’t a licensed one, you will again be required to pay them only the amount which you had borrowed from them. If still, the payday lending company harasses you over the debt, you can file complaints with the State’s Attorney General and you can even sue them.
Consolidating your payday loans
Payday loan consolidation works like a credit card consolidation program. It is a process through which all the payday loans get rolled into single payday loan and the interest rate on that loan is lowered. You can either consolidate your payday loans on your own or else you can also take the help of a payday loan consolidation company. There are different payday loan consolidation companies that help the debtors in becoming free of payday loan consolidation debt.
Not all the payday lenders agree to the consolidation request. But, you as the borrower will have to try and communicate with the lender and make him understand that you are interested in paying back the money which you had borrowed from him.
So, if you think that payday lending is legal in your state and if payday lender is a licensed one, you can opt for payday loan consolidation in order to free yourself of the financial obligations you had taken on by borrowing payday loans.