While this can seem like a tempting solution to a temporary cash flow problem, these loans often carry high interest rates, and can quickly turn into a case of mounting debt if not paid back within the first pay period.
compiled information on six of the top debt consolidation companies in the United States and reviewed them based on services, fees, and reviews from the Better Business Bureau.The ratings, plus tips on how to choose a debt consolidation company, are below.Debt relief programs are another way break the payday debt cycle.Payday loan relief programs come in two different forms--debt management programs and debt settlement programs: These plans are offered by credit counseling agencies as part of a program that includes personal finance education.Some companies will take your payments for the first few months and all that money you pay goes towards their fees first.
The trouble with that is if you owe storefront lenders and they loaned you a certain sum of money why would they be willing to accept less from you? These lenders can also sue you, depending on your state, if they are not dealt with in the proper time frame and a manner that reputable consolidation companies will do.
In fact, the majority of people who use payday loans end up renewing the loan so many times that they pay more in fees than the amount they originally borrowed.
If you’re stuck in a painful debt cycle, there is a way out.
payday loan consolidation companies that deal with payday loans.
But not all consolidation companies operate the same way.
Payday loan relief programs and payday loan debt consolidation are common ways to manage outstanding payday loans.