There really is no secret in how to get rid of payday loans but this question keeps getting asked by new visitors that are in trouble with payday loan debt.
We are always happy to address this and any other questions that come our way so today let’s go ahead and tackle this one.
There are two ways to accomplish getting rid of payday loans and payday loan debt and we will cover both of them along with some tips on how to keep them away once you get rid of them.
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Paying off the Loans
This seems like the logical way to get rid of payday loans but it is not always the best way at face value.
Most people end up extending their payday loans at least four times before they can pay them off in full.
If they have multiple payday loans they are now in serious trouble trying to keep up with the interest alone, not to mention paying anything on the principal.
An average $500.00 loan comes with a two-week interest charge of around $150.00, and extending it adds another $150.00 interest and this cycle can repeat itself over and over until the borrower is buried in payday loan debt!
As you can see the end gets farther and farther away and the interest just keeps adding up.
Multiply this by multiple loans and several loans can add up to thousands of dollars in a very short period of time.
They call this the payday loan trap and it catches people all the time.
This is how the payday loan companies exploit the borrowers, and it can be devastating to one’s finances and credit history, not to mention the toll on relationships and so on.
We have seen people sell their homes, file bankruptcy and even end up in divorce court because of out of control payday loan debt.
Just paying off the loans is fine if the borrower can do it on the first due date and be done with it, but if any extensions are needed there is a better way.
Consolidation Companies
This is the most practical way to discharge payday loan debt and in the long run, if the borrower has multiple loans, overdue loans or defaulted loans this is really the only way to clear them up without paying outrageous interest.
A good consolidation company will for a small one time fee take all of the borrowers loans over and treat them like they are their own.
Interest is stopped immediately and negotiated down, with many times savings in the 50 to 75% range.
A good company will stop all collection activity and even stop most legal action as quickly as 2 hours after the borrower signs up for help.
The end result is the borrower will have all of their payday loans combined, interest stopped and reduced and a new repayment plan in place which will be affordable.
Here is an example of a good quality payday loan repayment plan.
Summary
Life can throw us many curves and a simple two week payday loan can become a monster that devours all of our time, energy and resources in a matter of weeks.
We want people to know that there is help for any situation involving payday loan debt and all that is required for help is to reach out and request it.
Everyone qualifies and everyone gets the help they need so if there is someone in is in trouble with payday loan debt in your life you can now point them in the right direction to eliminate their debt and avoid future similar situations!
Once the debt is gone there are ways to avoid getting back into the same situation.
We have created a free available resources page for those who may need help with issues related to acquiring and avoiding future debt.
We hope this article helps as many people as possible get rid of their payday loan debt and in the future avoid these traps that can destroy peoples lives!
