Are you in a debt situation where no matter how much you try to pay off your debts, they seem unending? Perhaps you are wondering how a simple Payday loan you borrowed turned into a huge, almost unpayable debt.
With payday loans, it mustn’t always end with “had I known.” You don’t have to remain stuck in a debt trap; you can do something about it. One way you can get yourself out of this debt is through debt consolidation.
With debt consolidation, you can receive funds to pay off your debts; then, you’ll begin to make monthly installments for the principal loan. It is the best form of Payday loan relief you can get.
Regardless, the choice is yours to make. If you choose not to consolidate your debt, you must brace up for more stressful debt repayment.
Today we’ll look at a few reasons why debts are harder to repay without consolidation.
Not Consolidating Means Multiple Payments
Nothing beats the emotional stress and frustration of juggling multiple debts. How would you feel when the calls keep coming in from your lenders to pay up? I bet you’d feel embarrassed and ashamed.
Thankfully, having just one monthly payment instead of multiple debts can help ease the pressure of making multiple payments each month before their deadline approaches.
Not Consolidating Means High Debt Servicing
Payday loan lenders charge high-interest fees and extra fees for missing payments and late payments. The money you should have used to settle your debt goes into paying interest and extra charges.
Debt consolidation allows you to pay an interest fee way lower than the interest fees on payday loans. When you fail to consolidate your payday loan debt, your fees will accumulate with every passing deadline.
Not Consolidating Your Debt Will Lengthen Repayment Time
Not consolidating your debt will lengthen your repayment time. The more you miss your payment, the more your interest rate accrues. And the bigger the loan, and the more time it takes to pay off your loan.
Not Consolidating Your Debt Will Badly Affect Your Credit Score
You’ll pay fines and penalties if you fail to uphold loan debt terms like skipping a payment or making a late payment. This will eventually lower your credit score when your lender reports to the credit bureaus.
Consolidation helps to improve your credit by reducing the chances of making a late payment or missing a payment.
Not Consolidating Your Debt Cripples Your Savings Life
If you don’t consolidate your debt, a large bulk of your monthly payment goes toward the interest rather than the principal loan. This is what keeps you stuck in debt.
When you consolidate your debt, you’ll receive a lower interest rate while you pay a stipulated monthly amount, saving you hundreds or even thousands of dollars in the long run.
Conclusion
It is much easier to fall into debt than to come out of it. It becomes even harder when interest rates continually increase, and monthly payments are so high that you have nothing left to fall back.
Get help with payday loan debts today by signing up for a Payday loan relief scheme. This way, your loans will be consolidated into a single loan, enabling you to make monthly installments at a lower interest.
