Payday loans create more problems for you as these come with high interest rates. Thus, it becomes hard to pay of these loans. In order to pay off one loan you may take another, and to pay off the other you will again need to take another. As a result this vicious cycle of loans goes on, and you are unable to become debt free.
Thus, it is better to avoid payday loans. What you can do is consolidate the loans into a single one so that you can conveniently make a single payment each month in place of many. You can join a debt consolidation company to help you in consolidating your debts.
Consolidating your loans will lower the interest rates, and it becomes much easier to pay of your debts.
Your personal details (name, email address and phone number) will be delivered to the company advertised on the Creditmagic after ve agreed to go for the counseling session by filling out the no-obligation form. However, it is your discretion to accept or reject their services.
Not all the creditors/debt collectors agree to trim down the outstanding balances, interests, and fees payable by the consumer.
Consumers working with the debt relief companies can still be sued by the creditors/collection agencies.
Debt relief services may have a diminishing effect on the creditworthiness of the consumer. The total outstanding balance may increase as the additional fees get accrued.
The overall amount saved by the consumer through the debt relief services is considered as taxable income by the IRS.