The beginning of the year is a perfect time to set a good foundation to grow your personal finance. No matter the setbacks you may have suffered in the previous year, there is still enough room to make positive changes.
For those having multiple debt challenges with high-interest rates, you’ll have to brace up and take responsibility to settle your debts. This is so you can walk the year financially fit.
The right approach to paying off your debt begins with consolidating your debts.
In this article, we’ll explain how a payday loan consolidation plan can be the best decision you make this year.
The Payday Loan Debt Challenge
Payday loans are loans with high-interest rates, to be paid back within the next payday (usually a month).
If you are unable to repay your payday loan in the short-term interval, you’ll have to pay a penalty fee for defaulting. This further sinks you deeper into debt.
According to the Consumer Financial Protection Bureau;
- The interest charge on payday loans ranges from $10 to $30 for every $100 borrowed.
- About 70% of payday loan borrowers take out a second payday loan within the space of a month.
- Half of the online borrowers are charged an average penalty fine of $185 which is very high
The above statistics show that a payday loan is the easiest way to get entangled in a debt trap. Instead of fixing a financial challenge, it can boomerang to become the challenge itself.
The Payday Loan Relief
Loan consolidation remains one of the best remedies for payday loan debt.
Payday loan consolidation can save your finances by merging multiple high-interest Payday loans into a single loan with a lower interest rate.
Payday loan consolidation is a game changer;
- No high-interest fees
- No additional fees for late payment or missed payment
- Allows you to make monthly installments
- Gives you an extension from short-term to long-term repayment.
- Help you save some money while still settling your debt
Steps To Get a Consolidation Loan
- You’ll have to prequalify. To prequalify means to meet the requirements for loan approval.
- Once you’ve prequalified, you can now apply for a personal loan.
In the course of your online application, you’ll have to fill out an application form that requires your personal information including your Social Security number, address, and contact details.
- You will need to submit documents such as proof of identity, proof of income or employment, and a bank statement.
- Once you’ve submitted all the requirements, you’ll have to sign the agreement. As soon as your loan application is approved. Expect funds within a week.
Conclusion
A new year is a good time to squarely face your debt and gear up toward your financial goals. With payday loan Consolidation, you don’t have to stay stuck in the payday loan trap.
With determination and discipline, payday loan debt consolidation can help you settle your debts and kick-start the new year financially fit.
