Payday Consolidation
It may be overwhelming to have the struggles of paying off multiple payday loans with exorbitant fees. This is a challenging type of loan as the borrower may be trapped in a cycle of loans with different interest rates.
Every year over 12 million individuals take payday loans; over 80% of the borrowers are unable to pay these debts; hence they are rolled over into a fresh loan with an increased interest rate. Luckily, at Encompass Recovery Group, we offer payday consolidation, which is a form of relief for people burdened with loans.
Payday consolidation entails taking a new loan that we offer at Encompass Recovery Group at a reduced interest rate and then using the money to pay back the multiple loans you have. You are then required to repay the consolidated loan with a single monthly payment, which is highly reduced compared to paying back multiple loans to different lenders with varying interest rates. Payday loan consolidation aims at streamlining your loan repayment and regaining control of your financial life.
What Payday Loan Entails
Payday loans are usually debts for small amounts of money, typically around $500, and the repayment is supposed to be made on the next payday. They are characterized as a helpful bridge as it has assisted many individuals in surviving between paychecks. Nonetheless, payday loans require higher financial responsibilities, and you are supposed to repay the loan on time to avoid hefty penalties and higher interest rates.
Inability and inconsistent payment of payday loans may spoil your credit score, and it may be challenging to boost. Typically, this short-term type of loan is not reported to the credit bureaus; thus, if you have a poor credit score paying back won’t affect your credit. However, your account can be sent to collections when you default on payments; hence it will reflect on the credit report and negatively affect your credit scores.
According to the Pew Charitable trusts report, only 14 percent of borrowers who take payday loans can pay back their loans. Due to the high interest involved, for most creditors, the loan may become unmanageable. Thus, taking a payday consolidation may be an ideal strategy for repaying your multiple loans in a streamlined process and with a reasonable interest rate. Your finances will be back on track within no time.
Debt Consolidation for Payday Loan
Debt consolidation for payday loans entails taking a personal loan with a reduced interest rate and using the funds to pay back your multiple debts that have high-interest rates. You will then be required to repay the consolidation loan within an agreed period.
At Encompass Recovery Group, payday consolidation comes with manageable repayment terms that are friendly to our customers. The monthly payments come with a significantly reduced interest making your financial life more manageable.
At Encompass Recovery Group, the repayment period is much longer, typically between 12 and 84 months. As opposed to payday loans, which are required to be repaid between two to four weeks.
It is recommended to ensure that you are in the financial position to repay the full loan amount and on time before contemplating taking one. Non-payment and late payments attract penalties and a higher interest rate, and you may also face recollection.
Benefits of Payday Consolidation
Getting back on your financial track is what you achieve by consolidating your payday loans at Encompass Recovery Group. Payday consolidation has a wide range of advantages, including reduced fees.
The interest rate charged on a consolidation loan is much lower than the amount incurred on repaying multiple debts from different lenders. The repayment mode is also more streamlined, reducing the chances of you forgetting your payment dates.
The monthly payment is predictable as one monthly payment is required. The interest charged on the loan is also fixed, eliminating inconsistency. One no longer receives disturbing calls from their various lenders demanding repayments.
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Begin Your Financial Freedom Now
Everyone desires to have financial control and be out of multiple unnecessary debts, and that is precisely our goal at Encompass Recovery Group. Over the years, we have been providing financial solutions and strategies that have helped thousands get out of the cycle of debts.
If you are stuck in the cycle of payday loans, call us today and get help.