In order to manage debts from many payday installment loans, why not consider consolidating the loans. Payday installment loan consolidation has been regarded as one of the most effective ways to pay off and manage debts that are quite impossible to pay off individually. There are now many lenders who are offering to consolidate payday installment loans.
Just like choosing lenders for your payday installment loans, you must also carefully select the companies who will be consolidating your loans. You also need to consider several factors that will affect your decision about which type of consolidation program is the most suitable for you and your debt problems.
Here are some ways to effectively consolidate payday installment loans:
· Have your multiple loan accounts switched to a single loan payment.
This method may not need the services of a debt consolidation agency to manage your debts because you can do this on your own. You can get expert advice from a credit counselor on ways to consolidate effectively.
With this method, you will pay off all your existing debts. But, find a lender who will give you low rates and favorable terms, with small monthly payments. You will be paying one big single loan and get rid of paying separate interest fees. This option will not only provide you with an opportunity to manage debts but will also help your finances get back on track.
· Enroll in a Debt Elimination Program.
This option of consolidating loans is suitable for those payday installment loan consumers who are going through extreme financial hardships, like losing a job due to a severe illness or accident. In this case, the debtor can contact a debt consolidation agency and sign up for a debt elimination program or debt settlement option. The agency will negotiate with your lenders to reduce your payments to finally settle the entire debt. If your creditors find your situation convincing and credible, they may agree to settle for around 30-70% of the total outstanding debt and write off the remaining balance.
· Find a Debt Consolidation Agency that can manage your debts.
The most common way to effectively manage debts is by hiring a payday installment loan consolidation agency. These agencies provide programs that will help you with consolidating loans and paying off your debts easily. The agency will represent you and manage the debts you owe.
With the process, they also negotiate with your lender not only for a better repayment plan but convince them to write off the penalty charges. The agency will arrange for a single consolidated monthly payment that you will be paying to them. They will then disburse the money to your creditors. However, the agency may charge fees for their services but the fees are worth the peace of mind that consolidating loans gives you.
In explicit terms, when consolidating loans effectively, you must be able to find a lender who can not only get you out of debt but will also help you manage debts responsibly.