Help consolidating pay day loans
This article explores consolidation options for paying off loans.This article assumes the consumer struggles with one or more payday loans.
In some states, the interest on the loans will prevent you from effectively repaying the debts in monthly installments; if you find that to be the case, you should contact the payday lender to try to work out repayment terms that will work with your budget.You can free yourself from a payday loan trap if you reside in one of the 12 states where payday loans are illegal once the effective rate passes the usury cap in that state.Usury laws dictate the maximum interest that many lenders may legally charge.You may have payday loans or other unsecured debts — the debt resolution techniques described here are the same for almost any unsecured debt.Which option works best for you depends on your situation.If you are in one of those states, the loan may be void, and you may be only liable for the principal amount borrowed.
In addition, there are eight states whose payday loan regulating statutes require lenders to set up an installment repayment plan if an account reaches the maximum number of rollovers allowed by law and the debtor declares that he/she is unable to pay the balance due.
If so, contact your loan servicer and ask whether you’d be able to switch the date your student loan payment is due. What you ultimately pay depends on the plan you choose and when you borrowed.
If you need lower monthly payments, consider an income-driven repayment plan that’ll base your monthly payment amount on how much you make. If you have multiple student loans, simplify the repayment process with a Direct Consolidation Loan—allowing you to combine all your federal student loans into one loan for one monthly payment.
If you do not repay a payday loan, the payday loan company has several legal remedies, including wage garnishment, levy, and lien.
See the resource Collections Advice to learn more about the rights of creditors and debtors.
Hopefully, one of these options will work out for you so these loans do not go into default.