We are happy to report that payday loan consolidation in Texas is now available!
What most people do not know is that it always has been since the inception of payday loans and the loan companies themselves have made sure they do not let any of their customers know this option is and always has been available to them. and most times the best way to go.
Most of the cases this option is the best way to go!
Why would an industry keep this information from their customers?
One reason, money!
In order to understand why a company would not make it a priority to offer a solution to a customers inability to make their payments, we must first understand the industry itself.
These companies are set up to make maximum profits. They will charge over 400% interest on a 2-week loan which is criminal in itself but it goes way deeper than just the initial 2-week loan.
They then offer the option of extending the loan an additional 2 weeks. All the borrower needs to do is pay the original 2-week interest charge and a new filing fee, usually around 15 bucks.
So let’s recap so far. The borrower took out a $500.00 loan for 2 weeks with an interest charge of $150.00 and a counter fee of $15.00 bringing the total owed on the borrower’s next paycheck to $665.00.
Now the borrower needs to extend the loan because they can not afford to pay it all off at once for fear of bouncing their checking account and worse, so the go ahead and extend the loan.
To extend it, they pay the $150.00 original interest charge and counter fee leaving the original $500.00 balance on the loan.
When the company extends the loan they add the interest and counter charge to the $500.00 and you guessed it, it just cost the borrower $165.00 to borrow $500.00 for two weeks and their new loan balance is…….. $665.00
Now according to statistics Lascatolagallery, the average payday loan customer will extend a loan 4 to 6 times before paying it off in full and doing the math say they just extend it for 4 times. That would put the total amount paid by the borrower for borrowing that original $500.00 at $1160.00!
The above is just the beginning for some as many people who end up in this situation start taking out multiple payday loans to be able to make the payments on the original loan and it just keeps growing and growing out of control until the borrower crashes completely financially.
It is easy to see why they call this the payday loan trap because that is exactly what happens, the borrower gets trapped in payday loan debt.
Lack of Regulation
Simple regulation on the federal level would eliminate all of this craziness but because the industry is making incredible amounts of money they are able to use the lobby system against the people by buying their own ticket through our elected officials and are able to manipulate the laws concerning their product for maximum profits.
A simple law that would not allow any extensions at all, no more than one active loan at any one time, a cap on interest rates per loan and the requirement to pay off the loan in full on the first due date would be all it would require to make these high-interest short term loans work.
We can help anyone who has payday loan debt IN TEXAS OR ANYWHERE ELSE IN THE USA and we can make all the horrors of these traps stop with one quick phone call.
Act now and get these monkeys off your back today and save a ton of money at the same time by letting us deal with these people for you.
We hope this article helps people interested in taking out a payday loan think twice and we also want to help any person who may be trapped in payday loan debt a way out!