subject: Know When to Contact a Payday Loan Debt Consolidation Company [print this page] Know When to Contact a Payday Loan Debt Consolidation Company
If you find yourself unable to repay your existing payday loan when it comes due, you may want to consider consolidating your loan debt. You may have taken out a cash loan for a variety of reasons. Maybe you needed to pay off your car repair bill, or you needed to pay for an emergency medical bill; whatever the reason, you may not yet have received your next paycheck and are in a panic because the cash loan is now due. In normal circumstances, a short term cash advance is due to be repaid when you receive your next paycheck. If you are unable to pay the loan on time you can extend the loan and repay it the following month, but the loan fee and interest rates will increase, and the loan sum will also increase to the point you may not be able to pay it at that time either. This is where a loan debt consolidation can come in handy.
How Debt Consolidation Can Help
You can enlist the services of a debt management company who will provide you with a payday loan debt service. The debt consolidation company will contact the lender for you and get the lender to agree to a consolidation repayment amount that will work for your benefit. The new loan payment will be less than you were previously paying and the interest rate will be lower as well.
Contacting a Debt Consolidation Company
Since a cash advance is a short term loan, it should be repaid when you receive your next paycheck, whether it is one week, two weeks, or once a month. If you are unable to repay the loan when it is due, it will cost you extra fees to extend the loan. This causes high payment amounts. Once you have extended the loan, you should contact a debt management company so that you can prevent the amount of debt from becoming too high for you to pay. If you contact the consolidation company right away, you should be able to comfortably repay the loan.
You will no longer need to communicate with the lender once you retain the consolidation company. It is the job of the consolidation company to contact the lender for you. If the lender wishes to speak with you, they will need to do it through the consolidator.
