Thousands of Texans struggle with payday loans every day. Debt consolidation is a solution.
If you’re one of the thousands of Texans stuck in the rut of payday loan cycles, you’re not alone. The state of Texas has 1,675 storefront payday lenders, and Texans have paid over $1.2 billion in payday loan fees.
Fortunately, there’s a solution for Texas residents struggling with payday loans: payday loan consolidation.
State of Payday Loans in Texas
Texas law has done little to curb predatory payday lending, so much so that the Center for Public Priorities has labeled Texas a ‘do-nothing’ state. Payday loans are as legal as they can be in Texas, and these lax laws have taken a toll on residents in need of short-term loans.
- Number of Payday Lenders: 1,675
- Payday Lenders per Thousand: 834
- Maximum Loan Amount: None
- Average Loan Amount: $460
- Max Loan Term: 180 days
- APR Cap: None
- Average 14 Payday Loan APR: 410%
- Collection Fees: 5% of payment or $7.50, whichever is greater
- Poverty Rate: 15.9% (2015)
- Regulator: Texas Office of Consumer Credit Commissioner
It can be extremely frustrating and financially devastating to get into payday loan trouble, but if you’re one of the people affected by PDLs, you’re not alone.
Payday Loan Consolidation in Texas
Fortunately, there is a solution for those stuck in unsecured, high-interest debt: payday loan consolidation.
Payday loan consolidation, also called credit consolidation and payday loan relief, is a way for you to reduce your debt burden into an amount and payment plan that’s much more manageable.
Thousands of Texans have their lives changed through payday loan consolidation, and it’s an option most should consider.
Texas Debt Consolidation Options
Payday loan relief takes two forms: debt consolidation loans and payday relief programs.
Debt Consolidation Loans
Payday loan consolidation loans are the less preferred, generally speaking. A credit consolidation loan is simply a loan that you take out, either secured or unsecured, that you immediately use to pay down your various other loans. Like most loans, they come with fine print that has late fees and penalties, so you must be sure to read the fine print.
Payday Loan Relief Programs
A Texas payday loan relief program involves working with a 3rd party to first understand all the various loans that you have. They will take on the hassle of paying off your current loans and also negotiate with the various lenders to reduce the terms. They will handle calls from the payday collectors and shut off your bank account from autodraft. In some cases, payday loan consolidation programs will find legal loopholes in Texas law to cancel or reduce what you owe. In exchange, you pay a flat, easy-to-understand monthly fee.
Getting PDL Relief
If you’re a Texan suffering from the constant stress and struggle of a payday loan, it’s important to do something. Payday loan relief, either in the form of a consolidation loan or a payday loan consolidation program, is essential to getting back into a place of financial stability.
More Resources about Debt Consolidation in Texas
- Payday Loans – Texas State Library
- Texas Finance Code TITLE 5. PROTECTION OF CONSUMERS OF FINANCIAL SERVICES
- Texas Attorney General – Debt Relief and Debt Relief Scams
Southwest Region Federal Trade Commission
1999 Bryan Street,
Dallas, TX 75201-6808