Debt Consolidation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Who Does Payday Loan Debt Affect?

Many Americans are in debt – this is nothing new. Debt pays no attention to one’s lifestyle, ethnic background, or your own personal beliefs; insurmountable debt affects people of all types. In an attempt to break free from this debt, many individuals are now picking up the habit of depending on payday loans to take care of outstanding bills and even expenses from day to day; but as thousands of Americans are now finding out, many of these payday loans will do nothing but drag you down deeper into debt.

PDF Document: Why Payday Loans Are a Bad Idea

Video: Avoid Payday Loans

Payday LoansAlthough contracts should always be read completely and thoroughly before signing, it is a fact that most individuals never bother to read any fine print whatsoever – and some don’t even read the document at all before signing. And as one might expect, there is a lot of fine print associated with payday loans, and most of it has to do with additional fees and charges that you are probably not aware of. Below is a list of some of the more common charges and fees that are associated with payday loans.

  • Depending on the company, your payday loan’s interest rate could be anywhere from 300% to 1000%, and even higher. Even the highest-rate credit cards and personal bank loans are much cheaper than this.
  • A base fee of $15 is usually charged for payday loans up to $200 – of course these exact figures may vary slightly from company to company.
  • If you cannot pay back the loan within the set period of time (usually your next payday) then you are charged an additional $15 – and this extra charge will continue to rack up every time you miss your payment. If this brings your bank account’s balance into negative numbers, you’ll also be charged overdraft fees from your bank on top of all this.

How Can I Stop Collection Calls?

Video: The Fair Debt Collection Act

If you are already suffering from payday loan debt, you probably receive phone calls from collection agents on a daily basis; and they may even be contacting your family members in an attempt to locate you, as well. Some of these calls can be downright rude, harassing and even threatening – but most people don’t realize that they are really quite easy to put a stop to. If you are receiving phone calls at your home, you will be required to send the debt collector a written “stop calling letter”. If the debt collector’s phone calls are coming to your place of employment, your own employer can put an end to such calls either verbally or by writing a letter to the debt collector. If these calls continue, you should file a complaint with your state’s Attorney General as well as the Federal Trade Commission; and in some situations you may even be able to take legal action against the collection agent or company.

Methods to Eliminate Payday Loan Debt

If you are already in debt because of a payday loan, it’s obviously too late to seek out alternative methods to make your financial ends meet. There are several methods that you can use to eliminate your payday loan debt, however – and many Americans have already done so successfully. Debt consolidation is a great method for getting relief from payday loan debt, but you’ll want to avoid taking out debt consolidation loans – remember, the reason you are even in debt in the first place is due to the inability to pay back your payday loan. Contacting a reputable debt consolidation company in your area is the best way to go, though you should be aware that they may not be able to take care of every single outstanding debt. For these debts, you might have to apply for a low-interest credit card to pay off your payday loan debt quickly – or you might even consider debt settlement. While there is quite a bit of risk involved with paying the costs associated with debt settlement companies, many times they can negotiate your payday loan debts to as little as 75% of what you owe.

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