Enlisting Companies like JKB Financial Inc. for Clearing Payday Loans

There are certain wage cycles where you run short of cash for various needs despite efforts to save up—and the next payday is roughly a week away. One of your options is to head to a financing provider in your community and take out a payday loan, which could run up to $500 and carry interest rates of up to 20%. These are a short term solution to be wary of, as they are likely to increase your long-term financial instability.

Taking out payday loans have their own ways of ruining your finances, which could even be worse than your current situation. According to the Community Financial Services Association of America (CFSA), employed professionals are borrowing approximately $40 billion in short-term loans. Paying them off in full by the next salary period may mean up to 700% APR looming over your head. If the loans have piled up and options are running thin, you can go to companies like JKB Financial, Inc. (doing business as American Debt Solutions) for an effective exit strategy.

You can set the ball rolling by first listing the details of every payday loan you took out. They include the amount, interest rate and even processing fees. Segregate each loan between online or physical lending outlets. Research on the outlets’ credentials as well, especially if they are licensed under state finance laws and are CFSA member-companies.

Bring all of your statements and records to a reliable debt settlement company to ask advice on how to map out your payment strategy. In the meantime, you can notify each lender in writing that you might not be able to pay up; the lender or their collection agency must send you written notices instead. The creditors will likely call you and remind you of your debt obligations; make sure to jot down the details of each call, right down to the name of the employee who called.

A structured debt settlement program for payday loans can involve some options like closing a bank account where you would normally draw the money for paying the loan. However, your settlement advisor may counsel you on not opening a new account, and may require you to ask the payroll department to send a regular check instead of wiring the money to your account.

There’s no harm in taking out a payday loan when you were really in dire straits. When the loans have accumulated, approaching an outfit such as JKB Financial, Inc. for help can reduce your headaches.