One way is to consolidate payday loans. Although consolidation cannot reduce the total amount of your debts, it can change the handling fees that should be paid for each debt into just paying for consolidation this time, which is to delete the operation process. Before merging, please make sure to choose a solution suitable for you based on your current debt situation. Next, we will teach you several steps to combine:
1. Confirm the current debt situation
Specify the current debt within the term. What you may not know is that you think you owe a lot of debts, some of which have already expired, and the lender has no legal right to recover the debt from you. Because most states have stipulated that the limited term of debt on the date of issuance is only 5-7 years. Therefore, after the expiration, you do not have to pay the debt. However, although you are not affected by the debt, you will be recorded by the credit system, which will affect your credit system. So, first of all, contact your lender, carefully check each debt you owe, see if it is still within the specified period, and calculate how many loans you need to repay.
2. Laws for querying payday loans
The loan on payday is strictly regulated by laws. And it may be checked in combination with local policies. We all know that on payday, the lender will charge a certain financing fee for those who fail to repay the loan on time, but most local governments will set a limit on these fees to protect some of the rights and interests of the debtor. Moreover, in most places, if you have not paid off the first debt, the institution or other interested parties are not allowed to lend you the second amount. If you have obtained several payday loans from the same institution, the extra loans have violated local policies. Therefore, you must promptly notify the lender and the consumer protection association to be fair and cancel these debts.
3. Inform the lender of relevant information
If you can be sure that all your debts are legal, then you can consider merging loans. This process is to combine all your debts to form a new debt and then pay it in advance. It is worth noting that you will pay a part of the handling fee, and then there will be financing costs. Therefore, you should consider whether you need to bear this cost. It may occur that the early repayment of the integrated loan will cost more than the installment repayment of each loan.
4. Find a third-party lender
The best solution is through a third-party lender, but often the best solution also faces the most severe test. You can contact the local institutions that provide consolidated loan services. Because these people are not the lenders on your payday, they can often help you solve the problem with more procedural means, and the cost will be lower. You can save some money by transferring the debt from the payday lender to these local financial institutions, but this method is complicated because we know that there is no strict credit investigation on the payday lender's payment, so many traditional institutions will check the debtor's credit and worry about whether it can be repaid in time. If you want to use this method, Try to reduce the debt you owe and submit to them vouchers that can prove your credit and assets.
