Are you interested in applying for payday loans consolidation? You must know that payday loans consolidation companies are illegal in all 50 states of the United States. If you don’t know this already, you probably are in for a surprise when I tell you this information. It is illegal to charge more than nine hundred percent interest on short term, pre-arranged loans in most states in the US, regardless of whether the loans are unsecured or secured. Payday loan providers put their businesses on Indian tribal lands in an effort to circumvent federal and state laws.
Payday Debt Consolidation – Payday Loans Payoff Help Online
Many of the payday loans consolidation companies also violate the usury laws in your state. This means that if you borrow money from one of these companies and then do not pay it back on time, the company can come after your wages. The US government is actually able to help you get out of this payday loan trap, but you must take the initiative and contact the companies to try to negotiate lower interest rates before you get into any financial difficulties. There are also state and local resources available to help you avoid getting in over your head.
What you do need to be aware of is that when you consolidate your payday loans, you will probably have to pay a percentage, if not all, of your debt back on your own income tax returns, credit card bills, automobile loans, and any other debts you may owe. However, you may find that with enough time and persistence, you are able to pay off all of your debt without much help at all. Before you begin your payday loans consolidation process, however, it is important that you set up an emergency savings account just in case you get into a bad financial situation and are unable to pay off all of your debt. Once you have done this, you should be able to go about doing your best to make sure that you never get into such a situation again.