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Home / Debt / Can Credit Counseling Help with Payday Loans?


Credit counseling may help with payday loans. The question you should be asking is whether you need credit counseling to help with payday loans. Read on to find out exactly what we mean.

How Credit Counseling Can Help

Credit counseling is often a free service that will contact your creditors and try to make arrangements for you to pay your debts under different terms. This usually consists of negotiating a lower interest rate, interest only payments for a short time, or extending loan terms in order to lower your monthly payments without destroying your credit profile. When all negotiations are complete, you will be presented with a monthly payment that you will need to submit to the credit counseling agency. The agency will then send the arranged payments to each of your creditors. Credit counseling companies often have prior arrangements with many creditors, so the process is smooth and can help you avoid bankruptcy. Many of these companies also offer other types of counseling, so you may find the help you need to keep control of your spending or any addiction that you may have.

Direct Negotiation

Now, as to why you should be asking whether you need credit counseling to help with payday loans or not. Payday lenders will often negotiate with you directly without much aggravation. The majority of them actually have backup plans in place to prevent borrowers from defaulting, they just do not advertise them. The best place to start is to contact the office where you obtained your loan. They will either deal directly with you or provide a number to call for assistance. You may encounter some initial resistance and demands for full payment as agreed, but this will fade if you stand your ground. Keep in mind that you need to protect yourself from financial ruin and whatever you pay is more than the company may collect if you default.

The biggest obstacles to negotiating lower payments with a payday lender are nervousness and guilt over not being able to pay as agreed. If you are able to conquer those feelings, you do not need a credit counselor to deal with the payday lender. If not, then you may need assistance.


About the author: Jerry Coffey


Jerry Coffey spent many years in a debt-riddled gray area somewhere between broke and desperately broke. His seemingly endless need for more and more cash led him to payday loans, repossessions, bankruptcy, and depression. After years of the same financial style, he heard a piece of advice that inspired him to find a way to change. The advice: ''The very definition of a fool is someone who continues to do the same things, but expects different results.'' This led him to a much more frugal lifestyle that sees all of his bills paid on time and a growing savings account. Even the seed of a retirement account has begun to sprout.


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