PDL Payday Loan Reliefs Remove the Shackle Around the Borrowers' Necks
Research indicates that around 12 million Americans take payday loans every year to cover cash flow issues. The average borrower takes between $200 to $1,000, depending on needs and state limits, and earns about $30,000 per year.
Borrowers use the loans for short-term financing or to pay monthly bills. On average, almost 58% of the borrowers are unable to clear the debt on time. If you are among those who have a payday loan and have a problem clearing your bills , DoNotPay can help with a .
How Do Payday Loans Work?
Payday loans are short-term loans that use employment details as security. The lenders require borrowers to provide proof of employment or regular income and valid identification. The lender will instruct the borrower to write a check authorizing them to withdraw money from their bank account. The loan must be paid back with the fee within two weeks.
Why Are PayDay Loans So Damaging?
Payday lenders prey on workers who are desperate for cash and need short-term loans to pay bills or cover daily expenses such as buying food or gas. They lure them with quick loans that come with exorbitant interest rates that far exceed the APR for installment loans.
Once the borrower begins to make payments, they realize they cannot clear the loan plus interest and still cover other expenses. This leads to a vicious cycle of regularly borrowing to clear bills. Some borrowers end up with rollover loans where one payday loan runs into another, making the debt unmanageable or unaffordable.
Payday lenders have access to your checking account. This means that they can withdraw money from your bank at will, leaving you with little or nothing to spend on routine expenses.
Here are some damning statistics on payday loans:
- The average borrower pays $520 after borrowing $375
- The average fee is $55 for a two-week loan
- The average borrower uses 36% of their paycheck to pay back the loan
- Nearly 80% of borrowers take a new loan within two weeks of clearing the previous one
- 75% of the clients are habitual borrowers and have taken a payday loan in the past year
Negotiate for Better Terms If You Can 't Pay Your Payday Loan
If you are unable to clear your payday loan on time, you can negotiate with your lender. Request a payment plan where you repay the loan in several installments. Some states require payday lenders to offer installment plans with no additional charges. You can also ask for an extended payment plan which gives you more time to repay the loan. Alternatively, try to renegotiate the terms to reduce the fees and the APR.
Payday Loan Consolidation
Payday loan consolidation is an arrangement or a relief program offered by debt consolidation companies to help borrowers pay debt in a structured manner. Consolidation helps reduce the monthly payments and gives borrowers more time to clear their debts. Most consolidation agencies also negotiate with payday lenders to reduce the interest rates that often exceed 400% APR.
- simplifies the payment by combining multiple bills into one monthly payment
- negotiates with creditors to reduce the fees
- stops the harassing by payday lenders and other creditors
|Payday Consolidation Companies||Most payday consolidation companies offer excellent services and payday loan relief packages. They consolidate your loans into one manageable monthly payment and give you control of your finances. Some will even negotiate to have your interests reduced to zero.
The best payday loan consolidation companies also offer clients financial counseling on avoiding unnecessary debts and getting out of vicious borrowing cycles. They educate them on sound financial practices such as budgeting and planning.
|Do-it-Yourself Payday Debt Consolidation||You can take out a personal loan to pay back your lenders. Once approved, you use the cash to pay off your lenders. This, however, leaves you to face the problem of settling the new loan.|
Your Payday Loan Relief Enrollment Package
Once you sign up with a consolidation company, they collect your details and enroll you in a payday relief program. They will negotiate with your debtors and come up with a payment package with a reasonable repayment schedule . For example, the repayment period for debts due in three months can be increased by up to 18 months.
Some benefits of working with consolidation companies include:
- There is lower or zero interest rates
- You have a manageable payment schedule
- You can regain control of your bank account
PDL Payday Loan Help from DoNotPay
DoNotPay 's payday loans product automatically generates a negotiation letter that you can send to the lender to request better repayment terms.
Access DoNotPay from your and you can lower your payday loans in just five simple steps:
- Search "Negotiate Payday Loans" on DoNotPay
- Enter the state you took out the payday loan in
- Tell us the amount you borrowed, the date you took out the loan, and when the payment is due.
- DoNotPay will automatically calculate the APR on your behalf, and determine the best way to negotiate your case based on the amount.
- You're all set! You can generate your personal negotiation letter with one click, and use it to contact your lender to get better terms for your loan.
Payday loans are predatory debts you should get off your back immediately. DoNotPay offers a fast and effective tool for negotiating better terms with debtors. We also assist with loan consolidation.
Besides payday loan relief, we also offer several other services.
- SAT fee waiver
- College application fee waiver
- Suing individuals and companies in small claims court
- Tips on protecting yourself from harassment and stalkers
- Ridding your email of spam mail
- Filing claims for warranties
Sign up with us for fast and effective pdl payday loan relief.