With the increase in the debt obligations within the nation, most people are taking resort to the short term loans or the payday loans in order to get immediate access to cash. Payday loans originated in UK and soon after, this loan became one of the most popular borrowing options for the people who are going through mid-month financial contingencies. As the borrowers need to wait for a long time while taking out conventional and traditional loans, they love to take resort to the payday loans as they get access to cash within 24 hours. Since the payday loan lenders don’t check your credit score before lending you the loan amount, they charge you high interest rates so as to reduce their risk in case you default on the payments. In case you incur debt, you may seek payday loan debt settlement help but not before you know the steps in which you can settle your debt. Read on the concerns of this article to know more on this.
1. Calculate the total debt amount: As you’ve taken out too many payday loans and you’ve defaulted on them, before you opt for debt settlement, your first task would be to determine the total amount of debt that you owe. Unless you know where you stand, you won’t be able to take any further step to settle your debt amount.
2. Check your savings account: Debt settlement deals with waiving off a certain portion from your outstanding principal balance but that doesn’t mean that you won’t have to pay anything back to them. The remaining amount has to be paid back to the creditors either in a lump sum or in easy and affordable monthly payments. So, you should check your savings account and ensure that you have enough funds to repay your remaining debt amount.
3. Negotiate with your lenders: You should then negotiate with your lenders so that they know about the hardship that is barring you from making the payments on time. If you’ve been refraining from getting help of the lenders, this is rather a blunder. Therefore, you should negotiate with your lenders and keep them updating about your present financial situation.
4. Write a debt negotiation letter: When you opt to settle your payday loans on your own, you can also draft a debt negotiation letter. Mention the total amount that you owe, the total amount that you’ll be able to repay them and the reason behind the defaults. Maintain a polite and humble tone while writing the debt negotiation letter so that they get impressed and finalize the deal.
5. Start making the payments: Once the payday loan lenders agree to a reduced amount, you should immediately start making the monthly payments. Sit with them to decide on an alternative repayment schedule through which you can repay the entire loan amount throughout a stipulated period of time.
Therefore, when you’re going through dire financial straits, the payday loans are like blessings in disguise. But if you make the mistake of getting addicted to such loans, you might have to rush to the debt settlement companies for help. Follow the above mentioned tips to settle your debts on your own and secure your financial future.