Escape the Cycle of Payday loans

Each and every year, more than 12 million Americans borrow money from payday lenders. Sadly, the majority of people who resort to these types of loans are already in financial trouble of some sort--causing a disturbingly large portion of these borrowers to end up in a downward of spiral after being unable to make the payment on these loans. With annual interest rates of oftentimes averaging more than 400%, it’s easy to see how these debts can destroy lives and create seemingly inescapable financial sinkholes.

 

All that being said, and in spite of the clear danger that these types of loans pose, it’s not difficult to see why they’re tempting, either. Most payday loan borrowers are completely unable to afford other forms of credit due to previous financial hardships--and these loans are typically used to make necessary payments such as rent, groceries, or bills. Unfortunately, taking out debt to pay debt is not a sustainable strategy.

 

So if you’ve fallen victim to the vicious cycle of payday loans, you may be feeling frustrated or even hopeless. Relax. There are solutions out there--and, with wise financial management and a strong partner such as Madison Monroe and Associates, it is possible to regain control over your life.

 

Madison Monroe and Associates is not a debt consolidation service that charges top dollar just to reduce your ARP by a marginal amount and arrange one monthly payment. Though such services may be helpful to some, they are not enough to facilitate escape from most payday loan debts. What you need is an aggressive strategy aimed at dramatically decreasing the amount that you owe. This is what we can offer here at Madison and Monroe. For more information, we highly recommend that you visit our website or get in touch with a Madison and Monroe representative today. www.madisonandmonroe.com 877-346-2797

 

Are Minimum Payments an Effective Debt-Relief Strategy?

If you have found yourself deep in debt, you know what a destructive force excessive debt can be in life. It can limit your opportunities for receiving financing, it can affect your job search, and, of course, it can cost you a significant portion of your income. And this does not even begin to address the feelings frustration and stigmatization that come along with such situations. Many people believe that the only way out of debt is the option right in front of them: making the minimum payments and waiting for the debt to be paid off in whole. In this article, we will address that concept, and we will discuss why it may not be the best option for you.

 

Making minimum payments is the most conservative approach to paying off debts, and as long as you do not feel that your debts are having a negative impact on your life you may wish to go this route. However, you should be aware that you will end up paying nearly 50% of your balance in interest alone over the first three years, and that, if your rates are over 25%, it is almost a mathematical impossibility to pay off your debt through minimum payments. Repayment through this method can sometimes take 20 years or more, and if you stop making repayments at any time (regardless of the reason) you will be destroying your credit while doing nothing to help your situation.

 

Taking a more aggressive approach can get you out of debt faster, allowing you to move on with your life. Though it is true that not all debt relief programs are created equal, you owe it to yourself to look into debt settlement. Debt settlement is not a bank-managed program like debt consolidation, and it does not carry the ten-year stigma associated with bankruptcy. Rather, it is a way of negotiating and lowering debt on the friendliest terms possible. Debt settlement has helped countless people get back on track financially: could it be right for you? Visit Madison Monroe and Associates online today to learn more. www.madisonandmonroe.com or simply give us a call 877-346-2797 we are here to help.

 

5 Concrete Ways That Your Credit Score Impacts Your Life

 

There are so many exciting reasons to get out of debt: for example, it can help you free up your personal income, it can reduce stress, and it can help you plan for a more stable future. One benefit of debt freedom that many people don’t even consider until they have gotten out of debt is the impact on their credit score. Though this seemingly abstract number might not always seem like the biggest priority when you are struggling to put food on the table and make ends meet, the truth is that your credit score plays a huge role in many important aspects of your life. Here are 5 concrete reasons that you should care about your credit score:

 

1. Land the dream job. Although not everyone realizes it, employers are legally entitled to view your credit score as part of their pre-employment background check--and many do. Having a low credit score could make you look unstable (or, worse, untrustworthy) which is why having a good score is very important.
2. Buy the car. If you’re hoping to finance the purchase of a car, you are going to need a solid credit score. If not, you could be stuck driving a beater--or even taking the bus.
3. Own your own house. As you can probably imagine, if a low credit score is enough to stop you from buying a car, it can also stop you from buying a home. Even renting an apartment generally requires a credit check!
4. Start a business. One final category of financing that many people seek at some point or another during their lives: business funding. Without a good credit score, it is going to be very difficult to get that new idea off the ground.
5. Pay less interest. If you do manage to get approved for a car, house, or business loan, the amount of interest you pay will be contingent on your credit score.

 

Ready to get out of debt and begin rebuilding your credit score and your life? Visit Madison Monroe and Associates online today to learn how! www.madisonandmonroe.com or simply give us a call 877-346-2797 we are here to help.  

 

The Student Debt Crisis

According to an article published recently in MarketWatch, nearly 70% of bachelor’s degree recipients leave school with debt. The student debt grand total? $1.2 trillion dollars, the average indebted college student between the ages of 20 and 30 now makes a monthly payment of roughly $350; and the average debt that students graduate with continues to rise. In the recent graduating class of 2016, the average student owed over 37,000 dollars.

 

Negative impact

The prevalence of student debt is having enormous impact on thousands of individual lives and our society as a whole. As the aforementioned MarketWatch report points out: “student loan debt may be preventing Americans from making the kinds of big purchases that drive economic growth, like house and cars, and reaching other milestones, such as having the ability to save for retirement or move out of mom and dad’s basement.”  If these words sound painfully close to your own reality, then it may be time to take action and take control of your life.

 

What can be done?

Ask a hundred people what can be done on a political or society-wide level about this problem, and you’re likely to get a hundred different answers. However, on an individual level, the answers are a bit more clear, though still far from simple or easy. First of all, students should take every possible step to reduce the amount of debt that they take on over the course of their studies--this means applying to scholarships, considering beginning at a community college, and possibly living with parents or relatives until their degree is earned. For students who find themselves currently in debt, the key is to pay this debt as quickly as possible before interest piles up and drastically increases their amount owed. This must be accomplished through a combination of careful financial management, aggressive debt payment, and, if necessary, a debt reduction service such as Madison Monroe and Associates. Visit us online today for more information www.madisonandmonroe.com or simply give us a call (877) 346-2797 we are here to help.

How to Handle Phone Calls from Debt Collectors

Receiving unsolicited phone calls from debt collectors can be intimidating--but it’s not the end of the world. If you are being contacted by debt collectors, then we highly recommend following these simple tips in order to keep yourself in the best possible position both financially and legally.

 

• Don’t make promises.  Debt collectors are calling you to pressure you: any agreement that you make should be made after careful consideration, and after taking the time to consult with your lawyer and with other people you trust. Never make a spur of the moment promise, as this can complicate your situation.
• Avoid “good faith” payments. One of the oldest tricks in the debt collector book is guilting debtors into making small “good faith” payments. This extends the statute of limitations for your debt, thus robbing you of one of your biggest bargaining chips!
• Don’t hide. It can be tempting to simply ignore calls from debtors, but this is a big mistake: it can lead them to call your employer or your relatives. (More about this later!)
• Keep a call log. Note the time of each call you receive, as well as the exact nature of the debt you are being contacted about.
• Don’t get angry. If your case goes to court, transcripts may come to light, and any outburst on your part will only make you look bad and hurt your case.
• Tell your collector if you believe that the debt is not valid. If you do, they are legally obligated to prove the debt’s validity before contacting you again. If you are right, the odds are good that they will simply give up and focus on more productive cases.
• Tell the collector not to contact 3rd parties. They are obligated to listen to you, and this can save you a great deal of personal and/or professional embarrassment. If you’d like, you can even request that you not be contacted anymore--although this may make it more difficult to keep track of your debt.

 

If debt has taken over your life, you don’t need to suffer. Contact Madison Monroe and Associates today to retake control. (877) 346-2797 or visit our website www.madisonandmonroe.com