Payday loans may seem like a quick fix to solve your financial problems until your next paycheck, but they can easily cause a cycle of lending that you won’t be able to keep up with. Interest rates, fees, and penalties start to stack up and make it even harder to get back on your feet. Before you know it, you’re dealing with a pile of payday loans, harassing calls from debt collectors, and no idea how to fix it. 

Stop Taking out Additional Loans

To truly get out of debt, you need to stop building it. The most important first step to take when embarking on your debt relief journey is to stay calm to prevent yourself from taking out additional loans that will increase your debt. 

Evaluate Each Outstanding Loan

If you aren’t able to tackle every loan at once, take a look at your outstanding balances and separate the ones with the highest level of interest. These are the loans that you should try to repay first, because they will drive your debt up in less time than your other loans with low interest. However, you shouldn’t spend more money repaying your loans than you can afford. Set aside as much money as you can to repay your high-interest loans, but don’t allow yourself to fall behind financially while trying to move forward.  

Get an Extended Payment Plan 

Contact your lender and see if you’re eligible for an extended payment plan (EPP). If eligible, your lender will increase your amount of installments so that you have more time to pay off your debt. Read the entirety of your EPP agreement to understand what happens if you fail to meet the requirements of the extension, because you may face additional fees or penalties. 

Ask Your Loved Ones for Help 

You may have taken out your first payday loan because you felt too ashamed to ask your friends and family to borrow money, but they are the people with your best interests in mind. Consider reaching out to your closest relatives and ask if they would be willing to loan you the necessary funds to alleviate your debt. Or, if you are a part of any religious groups or clubs within your community, check to see if they offer financial assistance programs that you could apply for. 

Find Relief from Debt 

If you can’t seem to catch up with your piling payday loans, contact the consultants at Progressive Debt Relief. We can provide tips to get you out of debt and equip you with the skills to make strong financial decisions for your future. For a free consultation, call us today at 1-877-590-1847. 

The internet may be a fast and convenient way to access information and entertainment, but not every website has your best interests in mind. Just like on-location lenders, online payday lenders may try to encourage you to make bad borrowing decisions disguised as quick solutions. To better inform your next online loan, let’s take a look at exactly how online payday loans work. 

Online Application 

Just like you would at a lender’s location, you must apply for your online payday loan through a loan website. The contents of this application may vary depending on the website you’re using and the state you live in. You’ll typically get your application results back within minutes, because these approval systems want to attract even the most unprepared borrowers. After submitting your online payday loan application, a representative may contact you to finalize your loan transaction. 

False Incentives 

Online loans are a quick way to get cash into your account, because you can expect to receive the balance of your loan in just 24 hours. This is a convenient trick that most lenders use to make online loans more attractive. However, some online payday loans are also loaded with false incentives. Some payday lenders also try to incentivize borrowers by offering exclusive loan deals online. These lenders disguise additional fees as special interest rates or higher borrowing principles to make their loans more appealing for borrowers in need of quick cash. 

Loan Repayment 

Before you know it, it’s time to repay your online payday loan. Unfortunately, some online lenders will automatically withdrawal your installments from your account, regardless of whether you have the amount available. This puts you at risk of overdraft fees and potentially at risk of defaulting on your other financial obligations. You should always be clear on the terms of your loan agreement, because if you are working with an online lender that isn’t automatically collecting payment, you could still be subject to additional fees if you aren’t able to pay your balance on the due date. 

Lender Harassment 

If you don’t do adequate online lender research, you may fall victim to an online scam. And, even if you decide not to borrow, you’re subject to countless phone calls from hungry lenders if you apply with the wrong website. By filling out an online payday loan application, your information could project to thousands of lenders affiliated with the website you submitted to. These lenders can call at any time of day offering you different interest rates, higher loan balances, and other false incentives to try and increase your debt.  

Online Lender Protection 

If you need to relieve your online payday loan debt or want to put a stop to harassing lender phone calls, contact the seasoned debt counselors at Progressive Debt Relief. We can guide to you to the best borrowing situation to help you avoid falling victim to online payday loan scams. For a free consultation, call us today at 1-877-590-1847. 

Anyone can end up with credit card debt, but it gets harder and harder to relieve when you have cards from multiple lenders, cards with different interest rates, and multiple types of credit card accounts. Getting a grip on your diversified debt can seem impossible, but there are more than a few ways to consolidate what you owe into a simple solution. 

Take out a Personal Loan 

 Taking out a personal loan is a strong option to consider if you think it will take some time to pay off your credit card debt. The installment periods can last years, and you can score a fairly low interest rate without having stellar credit. However, you may have to pay upfront loan fees depending on how much debt you need to consolidate.  

Transfer Your Balance

It’s a lot easier to pay off your credit card debt when it isn’t growing, which is why anyone struggling with debt should consider a balance transfer credit card. Depending on your credit, you may qualify for an introductory period with 0% interest. But, you typically have to pay for transfer fees in order to move all of your debt onto one card, and you must pay attention to what your interest fee will jump to if you aren’t able to pay off your balance within the introductory period. 

Use a 401(k) Loan 

If you have a 401(k) account, you can borrow from it using a 401(k) loan. You can only borrow a certain percentage of your 401(k) balance, and you will face interest on the amount you take out. However, the interest you pay on your loan will be to yourself, because your loan is coming from your own funds. The interest rate on this type of loan is also lower than the rate of a standard loan, and you don’t have to meet certain credit requirements to be eligible. But, depending on the requirements of your lender, you may face certain penalties if you leave or are let go from your job before paying off your balance. 

Change Your Borrowing Habits 

Living debt-free is a universal goal, and a great way to improve your debt is to look inwards. Even after you’ve managed to consolidate your debt into one account, it’s important to continue making conscious debt decisions that will improve your financial future. Some financial tips to keep in mind before, during, and after debt consolidation include:

· Don’t open multiple new credit cards at one time. 

· Pay your credit card balances on time and pay the full amount due. 

· Keep your credit card balances as low as possible. 

Contact a Debt Counselor 

You don’t have to deal with credit card debt alone. At Progressive Debt Relief, our ultimate goal is to equip you with the tools and skills to break your bad borrowing habits and create a debt-free future. Our financial experts can find the best route of debt consolidation for your situation. If you need help consolidating your credit card debt, contact us today. 

If you’re looking for some quick cash to get out of a bind, a payday loan might be tempting. However, it’s important to understand the hidden costs behind payday loans so you can determine whether or not it’s right for you.

The Actual Cost

The first thing you’ll want to look at when you’re deciding whether or not a payday loan is right for you is the actual cost of that payday loan. It might not seem so bad to pay $20 or $30 in a week to have some extra money in your pocket right now, but it actually can cost you significantly more in the long-run. 

For starters, payday loans often have an APR of 400% or more — that’s more than 10 times the maximum allowed rate for a credit card. Not only that, some charge expensive fees if you don’t make your payment on time. Plus, that extra $20 or $30 is going to set you back on your next paycheck, which makes the cycle all the more likely to repeat itself.

Negative Effect on Credit

One of the biggest things many people don’t consider with payday loans is how they hurt your credit. The interesting thing about payday loans is that they aren’t generally reported to national credit reporting companies, which means you don’t benefit from taking out a loan and paying it off on time. However, this is difficult because if you don’t make payments when they’re due, the payday lender can file a lawsuit or sell your debt to a collections agency, either of which would have an impact on your credit. In short, the only thing a payday loan can do is hurt your credit.

A Better Alternative

As you can see, payday loans aren’t a great idea. If you’ve recently taken out a payday loan that you were unable to pay back on time, Progressive Debt Relief can help. We have established relationships with numerous lenders, allowing us to negotiate on your behalf to make sure we find the best solution for you. To learn more about how we can help you squash your debt, submit our contact us form or give us a call at (877) 590-1847 today.

No two personal loans are the same — they will have different terms, conditions, and fees associated with them. However, there are some loans that are notorious, even known to be very anti-consumer, actively preying on lower-income communities and those who are desperate. Here are some of the worst offenders.

Car Title Loans: High-Interest Rates and Incompetent Terms

A person who is looking for a car title loan will submit the title to their car, truck, or motorcycle to a lender as a form of collateral. The person who is borrowing the money agrees to a litany of fees as part of the loan’s terms and conditions, with a fee to initiate the loan. While they are rather straight forward, car title loans are a notoriously bad option for obtaining a car. The car title loan is tacked with a high-interest rate, usually more than 300%. Not only will the borrower have to pay back an exuberant amount of money within 30 days, but most car title loans will require repayment in full. The terms and conditions of a car title loan puts your personal possessions at risk, with the loan being a fraction of the car’s market value.

Student Loans: Long-Lasting Debt

While the merit of student loans can be debated, they are one of the worst types of debts. Not only are student loans one of the first debts that a young person will have if they are pursuing further education, but if they do not have the right financial knowledge, they can unknowingly catapult themselves into severe financial debt. More than 44 million Americans are struggling with student debt — debt that cannot be canceled out with bankruptcy and will take decades to pay off, sometimes into retirement.

Payday Loans: The Worst Type of Debt

Payday loans are marketed as helpful and practical solutions for those who need quick cash in between paychecks. What they really are; however, are credit products marketed at misinformed customers. Not only are payday loans predatory, but they are one of the most expensive loans you can get. While the traditional credit card typically has an annual APR between 10% and 30%, payday loans are associated with extreme APR at upwards of 5,000%.

Debt Relief Assistance

Progressive Debt Relief is designed to remediate the effects of payday loans by actively settling different forms of unsecured debt. To learn more about our solutions for those in a financial black hole due to payday loans, contact us today 877.590.1847.

Even though many people understand the risky nature of payday loans, the industry remains as popular as ever. The inordinate interest rates and short payback timetables required by lenders should be enough to warn people off from taking out a payday loan, but many still bite the bullet. Though they are never worth the risk, here are three reasons people use to convince themselves that they need payday loans.

1. Immediate Need

Many people turn to payday loans in times when they need cash, and they need it fast. This could be anything from an overdue rent payment to medical bills or car repairs. People in need don’t see many other options than the fast and easy payday loan in these circumstances. Payday loan companies take advantage of this and seem like practical solution for people, but if you aren’t careful, you could get caught in a cycle of ever-building interest. 

2. Perceived Flexibility

Getting a standard loan from a bank can be an arduous process. Having a loan approved, managing your credit score, and waiting for authorization can be a frustrating endeavor that bothers the average person and takes time to complete. It simply isn’t practical to use normal money borrowing channels in some situations, so many opt for the seemingly quick and painless payday loan instead. Unfortunately, this has come back to bite countless people as they can’t pay back the loan within two weeks and are hit with unpayable interest. 

3. No Credit Check

When you can’t take out another credit card, no family member is willing to help you out, and the bank turns down your loan application, payday loans can seem like your only lifeline. This is especially the case if you have bad credit or no credit, barring any chances of getting approved by any reputable lender. Payday loans require no credit check, attracting many in the most helpless situations. But, the fact that they don’t require a credit check should raise some alarm bells in your head that there has to be a catch – and there is: dangerously high interest rates. 

Professional Debt Management

The world of loans and debts can be a wild and confusing landscape with deadly consequences for poor financial decisions. And make no mistake, taking out a payday loan can be a decision you deeply regret after the fact. At Progressive Debt Relief, we can help you navigate payday loan debt and get back on your feet again. Contact us for a free consultation today at 1.877.590.1847.

A hot product in the credit market, the payday loan is becoming a popular way to get some quick funds for an immediate need. However, it is easy for the customer receiving the loan to be taken advantage of by high interest rates and quick turnaround times. With this danger present, some states have taken action to either restrict or outlaw these kinds of loans in order to protect their citizens. To know how you are affected, here are the regulations for each state.

What is a Payday Loan?

A payday loan is a short term deal used for small emergency purposes, such as an unexpected car crash or a bill that is overdue. They are usually small loans under $1000 that must be paid back in full within the next payday of the borrower. With this tight timeframe, the interest rates are astronomically high, possibly exceeding 350% if you pay late. Due to the short schedule and huge rates, these loans can be very dangerous.

Free States

32 states do not have much if any legislation prohibiting payday loans. If you live in these states, it is important to know the rules they do have and then examine the rates and charges the lender requires before taking out any loan.

Alabama, Alaska, California, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, Wyoming

Stricter States

These 5 states have much more legislation and restrictions on payday loans, helping out consumers by limiting the rates payday loan companies can charge. A payday loan in these states is generally not as harmful as other states:

Maine, Montana, New Hampshire, Ohio, Oregon

Locked States

12 states have taken to outlaw payday loans with the idea of protecting customers. Generally, these states have a minimum time that a loaning company must offer for the loan to be paid back to limit short term rate maximums.

Arizona, Arkansas, Connecticut, Georgia, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Vermont, West Virginia.

Protect Your Finances

With payday loans, it is imperative that you know the details of the loan before entering into a deal that might haunt your bank account. Here at Progressive Debt Relief, we can help you climb out of unrestricted loan debt so that you never fall for the trap again. Contact us today at 1.877.590.1847 to set up a free consultation or to get more information.

Payday loans are a type of loan that come with a laundry list of pros and cons. As they are so tricky, potential borrowers should sit down and ask themselves some important questions when considering one. The most important: are online payday loans safe? While some payday loans can be made in person, there are a variety of website where you can take out one. So, are they safe? Let’s take a look. 

Privacy Concerns

As with anything on the internet, online payday loans do pose risks. The biggest risk is a threat to your privacy. Many online payday loan websites require information such as your bank account number and your social security number. Without even getting into the potential borrowing/payment risks, this could ruin you if the information gets into the wrong hands. If you are considering an online loan, it’s important to be certain that you aren’t falling for a scam. In addition, most online payday loan websites are lead generators, which give out or sell your information to prospective lenders. The more people that have access to your information, the bigger the risk to your privacy. 

Payday Loan Danger

Another set of risks are connected to nature of payday loans themselves. Payday loans are short-term with the majority requiring payment within weeks. That means the entire loan, plus interest, must be paid off within the span of a week or two. This can end up putting you into more debt if payment is an issue. Not only is the short-term payment a risk to your credit (even if your credit isn’t great), but it can end up costing you much more than you initially needed. If the payment can’t be made within the agreed-upon timeframe, the borrower could end up paying the interest for weeks before even making a dent on the principle. Finally, with the short-term payments and high interest rates, payday loans tend to produce a cycle of borrowing to pay off debt, digging you an even deeper hole. 

Progressive Debt Relief

If you have been caught in the cycle of payday loans or have other unsecured debts, consider Progressive Debt Relief. We have the tools to help you manage your debt so you can work towards bettering your financial future. For a free consultation, contact us at 1-877-590-1847. 

A payday loan is a type of short-term loan, with most requiring repayment within two weeks. The meaning behind the term is due to payday loans usually being used for purchases between incoming paychecks. They are marketed to those who need money in a hurry, with the entire application and approval process taking mere hours, sometimes minutes. 

Preying on the Vulnerable

People with poor credit, who are not able to secure personal loans with more attractive rates and fees, are sometimes pressed to obtain a payday loan. The person who is borrowing can do so without having their credit history scrutinized. Most payday lenders will verify the information that was provided to them, which will typically include income and bank account details. Lenders will use this metric to determine your ability to pay, instead of using traditional credit scores. FICO scores are not only designed to protect lenders, but they are also designed to insulate uninformed borrowers who may not fully understand the fees that are tacked-on to these fringe loans.

Not only do payday loans target vulnerable communities, but they are usually an overall bad financial investment. Payday loans usually add a $15 fee for every $100. For a loan of $500, the fee might be as much as $75. This is interest that is charged for just a few weeks. If you annualize that charge, that is equivalent to a loan with an interest rate of nearly 300%!

Standing Up Against Predatory Lending

A combination of regulatory scrutiny and a more educated population has reduced the popularity of payday loans in the past few years. Unfortunately recent regulations have ensured payday loans are not going away or becoming a relic of the past. The Consumer Financial Protection Bureau has been at the forefront of payday loans regulations and is supposed to be cracking down on their deceptive practices.

Keep in mind that even if payday loans die a timely death, there will always be a need for short term loans and lenders or credit organizations that will take its place and bleed financially vulnerable individuals. If you are a victim of payday loans and you are finding yourself in a financial black hole due to their fees, contact Progressive Debt Relief.

Professional Payday Loan Relief

With established relationships with all the major payday loan companies and creditors, Progressive Debt Relief has the experience and ability to settle payday loan debt efficiently and discreetly. Our financial experts will work with your creditors to negotiate and settle your payday loan debt for good. To find out more about our services, or to schedule a complimentary consultation, contact us today.

A payday loan is an emergency loan designed to be taken out for a short duration of time. Most people who take payday loans close to the end of the month do so in order to fund unexpected purchases as they provide the easiest and most convenient way to borrow money. However, if you have gotten stuck in a payday loan cycle, have racked up considerable debt, and are unable to meet your monthly payments, there are a few ways for you to settle your payday loan debt.

Negotiate with Your Lender

If you are not able to meet your monthly payments, then you can negotiate for a settlement scheme directly with your payday loan lender. This arrangement will allow you to pay less than the balance you owe to clear your debts.

Before undertaking the process, you should:

· Check out your credit report to determine undue debts

· Determine whether the accounts are past the Statute of Limitations (SOL)

· Decide on a way of paying

Partner with Professional Debt Negotiators

If you are not comfortable negotiating with the lender yourself, you can enlist the help of a settlement company. You can either opt for:

• Progressive Payments – a settlement company negotiates on your behalf to settle your payday loan in discrete amounts.

• Accumulative Settlements – after personally saving small amounts each month, you can contact a settlement company to negotiate for you to pay less than the amount you owe.

Your Professional Debt Settlement Partner

At Progressive Debt Relief, our purpose is to help you reduce, settle, and eliminate your payday loan debt. Over the years, our company has established connections with the major payday loans providers to help you negotiate more manageable payments. We pride ourselves with many years of experience in helping our clients settle payday loan debt efficiently and discreetly. We also provide free consultation and charge no upfront fee. 

Guided by the highest standard of honesty and integrity, our highly qualified financial experts can be trusted to negotiate on your behalf and work closely with your creditors to settle your payday loan debt for good. Avoid the headache that comes with constant harassment from payday loan lenders. Contact Progressive Debt Relief today and get the relief you deserve.

A payday loan is a credit that you take to cover your emergency needs and must pay back in full by your next payday or on an agreed upon date. In most cases, the lenders debit the full balance from your bank account using a post-dated cheque that you signed when first accepting the loan.

Late Fees, Interest Fees, and Account Freezes

Most lenders will penalize you with a late payment fee if your account does not have money by the due date. From this point, your cash will continue to accumulate interest at a given percentage each day. Unfortunately, some lenders do not give exact fees of the late payment charge of payday loans. The law requires the lender to freeze charges and interest after 60 days of non-payment, but this depends on where you live.

Debt Collection Calls

If you do not pay up within about two months, your payday loan lender will hand over your file to a debt collection agency. The agency will call you, send you letters, or even visit you to demand cash. You are given a chance to draw up a plan on how you are going to pay back your loan, but if you still cannot afford repayment, the collector may institute legal action to have you pay.

Plummeted Credit Score

Not paying back your payday loan may get you a negative rating with the credit bureaus. Also, it may make it harder for you to get credit or make large purchases in the future. Unfortunately, the short repayment period for payday loans can easily get you trapped in a spiral of mounting debt that gets harder to repay with each pay cycle. If you get into such a problem, it’s a good idea to seek help from debt consolidation professionals.

A Way Out of Payday Loan Debt

At Progressive Debt Relief, our debt consultants have worked with negotiating and settling payday loans for many years. We can negotiate with the lenders on the best terms to help you settle your payday loan without undue pressure, put an end to harassing calls, and help you restore your credit. To get your finances back on track, contact us today 877-590-1847 for a free consultation.

Borrowers who have fewer options often choose short-term loans such as payday loans for quick cash. However, it is never a good idea to take a payday loan to consolidate another payday loan. Not only are the interest rates astronomically high but doing so can set you on a cycle of borrowing that can be extremely difficult to end. If you are struggling to payback your loans and lenders are breathing down your neck, you may consider payday loan debt consolidation as an option. 

What is Debt Consolidation?
 

Short-term loan consolidation involves merging multiple debts into one. This allows you to pay lower interests rates. However, it is a more convenient process and less confusing to pay one company at the end of the month instead of multiple lenders. If you are facing mounting debt, here are a few strategies to help you find the best payday loan consolidation option for you.

1. Compare Rates and Terms

Different Loan providers will offer different terms. You should always do sufficient research to see the option that is most viable and provides loans just tailored for you. In doing so, you might consider:

· Your payment schedules

· Your financial needs

· The option that helps you to save the most

You can always approach a lender and renegotiate terms.

2. Consider Your Outstanding Debts

Your available consolidating options will depend on the amount of money you owe the lenders. The less the amount, the more options you have. In fact, if your debt falls below $3,000 then your credit score is fine and you can obtain consolidated credit, which has no interest for the first 12 – 18 months.

3. Know Your Credit Rating

Always remember your credit score will always determine your lending options. It is, therefore, paramount to get a copy of your credit report to determine your eligibility. If your credit card carries, high balances or you have missed several payments you might want to consider other options. Remember the law entitles you to get a free copy of your credit report every year.

Professional Payday Loan Consolidation

If you are in a constant struggle with your payday loan lenders, worry no more. At Progressive Debt Relief, we have made it our goal to help you with debt consolidation and elimination. We have established connections with different companies, which helps us stand a better chance when negotiating. We have experienced financial consultants who will negotiate and help you settle your debts efficiently, discreetly, and for good. Just when you thought our services could not get any better, we don’t charge consultation or upfront fees. For more information, contact us today.

If you‘re strapped for cash and cannot wait until your next paycheck, there are several ways to borrow money in the event of an emergency. The most readily-available options are short-term loans and payday loans. 

Reasons for Taking Out Short-Term or Payday Loans

Not meant for frivolous spending or vacation money, short-term and payday loans are designed to supply responsible borrowers with quick cash to cover emergencies such as:

· Medical crises

· Funeral expenses

· Home damage

· Household appliance replacement

· Unreliable transportation repairs

· Gaps in employment

While they both offer instant funds, short-term and payday loans differ in the amount of time they give you to pay it back and the number of repayments you can make. Many borrowers, however, prefer the flexibility of short-term loans over payday loans. Here are some reasons why short-term loans are a better alternative to payday loans.

Disadvantages of Payday Loans

Because payday loans are fixed, you only have until the next paycheck to repay the loan in one lump payment. However, payday loans have high interest rates attached. Therefore, with payday loans averaging around $400, a borrower has two to four weeks to come up with nearly $500. If they could reasonably come up with that much money in two weeks, then they wouldn’t have needed a payday loan in the first place. This is an unrealistic lending model that creates an endless cycle of increased debt and interest and rollover fees that can destroy your credit and cripple your financial health.

Benefits of a Short-Term Loan

Unlike payday loans, short-term loans generally offer the borrower a realistic timeline for repayment. With short-term loans, you are given adequate time to pay-off your loan — generally two to 10 months. While not always the case, short-term loans have even been known to grant up to 12 months to pay back a loan. More and more people are turning to short-term loans to get them the cash they needed in a short amount of time. While short-term loans allow you the opportunity to borrow money without becoming a victim of the predatory practices perpetuated by the payday loan industry, they are still high-interest loans that put you in debt.

Loan Debt Consolidation

If you are swimming in debt from short-term or payday loans, rely on the professional credit counseling, financial assistance, and debt consolidation services at Progressive Debt Relief. We can help settle your unsecured debt and put an end to your cycle of borrowing. To schedule your complimentary consultation, contact us today.

The predatory-lending industry recently scored a victory. Current acting director of the Consumer Financial Protection Bureau (CFPB) and Trump appointee, Mick Mulvaney has indefinitely suspended a rule finalized in 2017 under the Obama administration that placed restrictions on “payday” lending.

Reversing the Regulations

Set to go into effect on January 16, 2019, the ability-to-repay ruling would have required lenders to determine if borrowers can legitimately repay their debts before issuing them a loan. It would have also placed a cap on the number of loans that lenders could issue a single borrower. In addition to delaying the ability-to-repay requirements for payday lenders, the CFPB has also extended the compliance date until August 2019 to give the lending industry time to incorporate the expected changes.

The Need for Payday-Lending Restriction

For years, public-interest groups have demanded restrictions on the type of short-term loans that exploit lower-income Americans. An advance on a future paycheck, “payday”  loans average between $100 – $500. Borrowers are given two weeks, typically until the next paycheck, to repay the loan plus interest. This creates a never-ending cycle of debt as many borrowers lack the ability to pay back their loan after the initial two weeks. Because of their astronomical interest rates, such loans are not structured for repayment, but usury. The rule would also have restricted lenders from directly withdrawing money from the accounts of borrowers who did not repay their loans on time.

The New Consumer Financial Protection Bureau

Evident from its name, the Consumer Financial Protection Bureau was established to protect consumers from financial ruin and exploitation by shady lending practices such as the payday-lending sector. Mulvaney’s actions signal a shift in the goals of the CFPB from protecting the interests of consumer to the interests of Wall Street.

Payday Lending Salvation

If you have suffered mounting debt from short-term, payday loans with exorbitantly high interest rates, there is a way to end your debt spiral. At Progressive Debt Relief, we offer debt assistance and credit counseling programs that can help settle your payday loans and other unsecured debt. Let us provide you with the tools you need to get back on your feet. Contact us today to schedule your complimentary consultation.

Payday loan lenders have a more relaxed loan application process than other banks and lenders. This is especially true for payday loan lenders that allow borrowers to apply online. Generally, payday loan lenders will look the other way if you have low income and poor credit history. However, because of their eased eligibility requirements, the interest rates of payday loans run extremely high. If you understand the risks associated with taking out a payday loan and yet still decide to apply, make sure your online payday loan lender displays the following qualities of a legitimate operation.

Easy-to-Find Contact Information

If a lender does not have a physical address or contact information listed on their website, then they are probably not legit. After all, a lender that doesn’t want to be found is likely hiding from something. If you are able to find a contact form, email address, or phone number, reach out to them to see how responsive they are. A legitimate lender will get back to a potential consumer. That’s just good business.

Approval by the Better Business Bureau

A well-respected sign of reassurance to consumers, accreditation by the Better Business Bureau (BBB) is a seal of approval that affirms if a company is trustworthy and deserving of your business.  

Transparent Payday Loan Fees

Legitimate payday loan lenders are legally required to list all applicable charges and fees that you will be required to pay over the course of the loan. If the fees are hidden by a lender, then they are not legit.

No Upfront Payday Loan Charges

You should not have to pay anything before you borrow, so beware of any illegitimate lenders that request you to pay money upfront.  

Obeys State Payday Loan Regulations

The ability-to-repay ruling requires lenders to weigh an applicant’s income, expenses, and debt in order to reasonably determine whether they have the ability to repay the loan. Legit payday loan lenders also cannot charge you more than the state maximum limits, so be sure to check your state’s lending regulations before borrowing any money.

Do Your Payday Loan Research

An online payday loan lender that offers quick cash with no questions asked is likely too good to be true. Either shop around for a loan that’s right for you or try budgeting for your expense if it can wait. Don’t suffer the long-term financial repercussions of doing business with a questionable payday loan lender with sky-high interest rates and rollover fees. 

Legitimate Payday Loan Relief

If you need help rebounding your finances from debt caused by payday loans, consult with the professionals at Progressive Debt Relief. Not only can we help you consolidate your existing debt, but we can supply you with the tools you need to avoid future financial distress and get you on the road to a debt-free life. Contact us to learn more about our services or to schedule a complimentary consultation.