Every year, an estimated 12 million Americans take out payday loans. They are short-term loans that look like an easy solution when you are short on money. These loans are available regardless of your credit score and provide instant access to cash. They are known as a very helpful bridge between your paychecks. These loans are also very expensive, as they come with fees that translate to ultra-high annual percentage rates, which makes them extremely challenging to get rid of.
Many payday loan borrowers end up trapped in an endless cycle of debt when they extend their initial loan because they can’t afford their payments or take out another payday loan to pay it off. Luckily, debt relief for payday loans can help you escape this debt trap. It will also save you from paying sky-high interest on payday loans.
Payday Loan Statistics:
By nature, payday loans tend to trap well-intentioned borrowers into a debt cycle they can’t escape. Yet over 14,000 storefront payday lenders, combined with endless online lenders, rake in $12 billion in fees yearly. The Consumer Financial Protection Bureau statistics and research from the Pew Charitable Trust show that the average annual percentage interest rate on a payday loan s 369%, along with the average borrower spending $520 only in interest and additional fees to borrow $375. If you are struggling with payday loan debt, you need to get debt relief for payday loans and avoid these types of loans in the future. Here are some important facts about payday loan debt.
- Every year, 12 million Americans take a payday loan.
- On average, a person who takes a payday loan has to pay $550 in fees to borrow just $375.
- 671% is the average interest rate on payday loans.
- Lenders in the US make $6 billion every year in fees. Fortunately, debt relief programs are the way to reduce your payday loan amount and interest rates.
Debt Relief Programs for Payday Loans:
Payday loans look like the answer to short-term financial shortfalls, but they can easily lead to long-term financial distress. However, the Best Debt Relief Company can help you to get debt relief for payday loans. It is much easier to manage and available with significantly lower borrowing costs. It will help you settle your payday loans. Moreover, it involves combining your existing debt into a single payment plan. Luckily, there are two ways to merge your debt.
Payday Loan Relief Program:
This program involves working with a company representing you to the lenders. You can also call CuraDebt payday relief programs, debt settlement programs, or debt management programs. However, they will charge a flat monthly fee, and in return, they will take on the liability of paying your lenders. Sometimes they also negotiate with lenders on your behalf to reduce fees. Other times, they pay the lenders in advance and offer a loan to you. Either way, you are getting a flat monthly rate over an extended repayment period without interest calculations to do on your own. You must pay the company, which will deal with your lenders on your behalf.
A Debt Consolidation Loan:
It is a personal loan. In a debt consolidation loan, your lender will give you a new loan at a new interest rate. You can use this loan to pay off our higher-interest payday loans. The way debt consolidation loans work are very easy. Initially, you need to apply for the loan and get approved. After that, take the cash, pay off your lenders, and pay back the new loan. However, the benefit of this loan is that you are completely in control. In addition, you don’t need to wonder what someone else is doing.
A debt consolidation loan is the last hope for people struggling to eliminate payday loans. These debt relief for payday loans comes with a much lower interest rate. In addition, you could get approved for it even with less-than-perfect credit