Payday loan settlement: A savior in pay day loan debt crisis

Payday loan settlement: A savior in pay day loan debt crisis

by admin on June 6, 2014

Being the easiest and quickest way to obtain cash, Pay day loans always tempt debt stricken consumers to borrow more than they can afford to repay and consequently lead them getting into a never-ending cycle of debt. If you are one of these poor souls, who keep on rolling over their pay day loan debts every two weeks and pay a fee each time, then you should consider payday loan settlement as your viable option. If you wonder what pay day loan settlement is and what are the benefits it offers, read on to find the answer below.

Payday Loan Settlement

If you are more comfortable to make steady and affordable payments then Payday loan settlement might be an ideal solution to your debt crisis. Here you can get rid of lump-sum debts by negotiating a reduced amount of money with the lender who will accept the reduced payment as full and final payment. Pay day loan settlement not only relieves your debt burdens, but it also helps you avoid the hazards of bankruptcy, lawsuits, and wage garnishment as well as help you to re-establish a sound financial footing in the long run.

Benefits of Payday Loan Settlement

  • Payday loan settlement helps you to get rid of the high APRs charged on your payday loans.
  • Payday loan settlement allows you to repay your loan repayment all at once.
  • With pay day loan settlement you can waive late-fees and over-limit charges and can focus on paying the principal amount.
  • Effective settlement plan can reduce your owed amount up to 60%.
  • Debt settlement pulls you out of the deepening payday loan mire and future on time payments minimizes the damages to your credit score. It also spares you the horror of filing bankruptcy.
  • With Settlement you can certainly get rid of annoying creditor’s calls and restore your peace of mind.

Keep in mind

Before you actually start the settlement procedure, take some time to do your homework and keep in mind the points given below.

  1. Your first and foremost duty is to enlist your payday loans that you have taken out so far including the names of the lenders, the amount borrowed from each, the total amount needed to be paid to each lender, the interest, and late fees.
  2. Remember, every state that permits payday loans maintains an online database of every licensed lender. Check your state’s licensing laws intently and in case you discover that your payday lender is not licensed, all you need to pay is the principal amount only.
  3. You better be aware of State payday lending statutes. It will help you to understand whether your lenders are overcharging you or violating any of the settlement laws or not.
  4. It is not a great idea to close your checking account in order to compel your payday lenders to settle. By doing so you might land up in court for breach of the loan agreement and wind up paying the lender’s attorney fees and court costs along with the outstanding loan amount.
  5. Make sure the settlement company you are hiring is a member of the local Chamber of Commerce and affiliated with the BBB (Better business bureau). These accreditations are proofs of the settlement company’s fair conduct. If you find any discrepancy in the settlement agency’s conduct lodge a complaint with the BBB or the National Consumer Debt Council.

Keep in mind the above mentioned points and ensure your financial freedom sooner or later with pay day loan settlement.

Image Credit: Eric Cuthbert

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