If you are having difficulty paying your debt on your payday installment loan, you might consider consolidation of all your loans into one because debt consolidation is taking one loan to pay off the others. This maybe an option especially if you are being unnerved by your lenders.
So how do you consolidate payday installment loans? Here is how you do it:
1. Get the outstanding balance on your payday installment loans and other unsecured debts if there are any. Calculate the total amount of your debt.
2. Contact a reliable debt consolidation company. These companies help you consolidate your payday installment loans. They also offer a free debt counseling session where you can get advice from a debt counselor on your financial problems. The debt counselor will give suggestions on what consolidation program or debt settlement you need.
3. Try to negotiate a reduced rate for your new loan. You may ask the debt consolidation company to negotiate with your lenders to get lower interest rates on your payday installment loans so you won’t have a hard time paying them off. Ask help on ways to reduce late payment fees and additional charges.
4. Abide with your new payment plan. Negotiate for maximum monthly payments that you can afford to pay. Make sure that the new payment plan is suitable and convenient for you.
Can you ask consolidation of payday installment loans when these have been turned over to collection agencies? Yes it is possible.
Here is what you should do:
1. Check the Statute of Limitations or SOL on your debt.
2. Then, request for a debt validation. If your SOL has not expired, the Collection Agency can win a judgment against you and get your wages. So, ask the collection agency to validate your debt by sending them a validation letter.
3. If the collection agency granted your request for reconsideration, you may consolidate and pay off your debt. Remember that negotiations are done between you and the collection agency. So the original lender cannot add additional charges. You transact with the collection agency and not with your lender.
4. If in case the SOL has expired, the collection agency cannot win a judgment against you. But this doesn’t mean that you can run away from your debt. The collection agency will still collect it from you. What you will need to do is to send them a cease and desist letter. Or the most preferable choice is to apply for a consolidation loan and pay the debt off.
What are the benefits of consolidating payday installment loans?
If you apply for a debt consolidation loan, you lower interest payments, reduce late fees and create fewer payments. Also, you get out from your stressful situation because of too many unpaid loans
Consolidation of your payday installment loans will help pay off your debts with ease. This is the most suitable option when you are unable to cope with the monthly payments of your numerous loans. It is also the easiest and fastest way to pay off your debt.