A payday loan consolidation is a program where a debtor hires a company to negotiate and consolidate their payday loan debt so that their balances are reduced and they are only responsible for a single monthly payment. As much as we wish there was, there is no specific equation that one can use to determine whether or not they need a payday loan consolidation. You are the only one that can decide that. However, at ConsolidationNow.com we can give you some questions to ask yourself that may help guide you in the right direction.
- How much payday loan debt do you have? This should be a fairly easy question to answer. Even without grabbing a calculator and adding up exact amounts just put an estimate down on paper. Is it more than $1,000? If it’s less than $1,000 you may be better off discussing a payment plan directly with your lender. If your payday loan debt is more than $3,000 then a payday loan consolidation could really help.
- Are you being constantly contacted by your lenders? There are laws in America today that protect debtors from being harassed by third party collection agencies, but 1st party lenders (the lender you borrowed directly from) have more rights. If you are dealing with a phone call, email or letter every day from a payday loan lender then it may be a good sign that you should consider payday loan consolidation.
- Have your lenders threatened legal action? Payday loan lenders have the right to certain kinds of legal action such as garnishment of wages. You will need to review the contract that you signed with them at the beginning of your loan to ensure that they can do this. Garnishment is a difficult thing to withstand because it is coming directly out of your gross wages. The only thing that can stop a garnishment is full payment or filing a bankruptcy.
- Could you potentially pay off your payday loan debt in 1 year? Answer this question with your current income and expenses in mind. Do you have money leftover to make a substantial payment on your payday loans each month? If the answer is no, then you could most likely benefit from payday loan consolidation.
Were you surprised by any of your answers to these questions? Do your answers point you in the direction of a payday loan consolidation? If you could benefit from lower balances and the ability to only pay 1 payment per month towards your payday loan debt then consolidation may be the program for you. Fill out the simple online application on ConsolidationNow.com or call our toll free number today for more information about how a payday loan consolidation can benefit you!