What to do if you’re in payday loan debt
Are you going through mid-month financial contingencies during this tough economic phase? Well, most people who have not been able to manage their finances are now resorting to payday loans as this is the best way to get easy and fast access to cash in no time. Payday loans are short term loans that seem to be an appealing option for all those people who are going through a credit crunch in the middle of month but if such people become addicted to too many payday loans, they will soon land up in high interest debt. However, you need not worry as there are some worthy options that can relieve you of your debt burden and help you lead a debt free life. Have a look at some of them.
- Take out a personal debt consolidation loan: The first option that you may choose is to take out a personal unsecured debt consolidation loan and consolidate all your high interest debts into it. This is a master loan that carries low interest rates than what you’ve paid on the payday loans. You just have to utilize the money in repaying all your payday loan lenders and then start repaying the loan in small and affordable monthly payments. You just have to make a single monthly payment instead of making multiple payments to multiple lenders.
- Take out a home equity loan: You can also tap the equity that you’ve accumulated in your home and this is only possible for those who are cash-poor-but-house-rich. Talk to your lender and get yourself a home equity loan to reap multiple benefits. The home equity loan will carry low interest rates than the payday loans and will also have an extended period of repayment term. You just have to make sure that you pay on time lest you lose your house to a foreclosure. Consolidate your payday loans after assessing your repayment affordability.
- Enroll yourself in a consolidation program: Various debt consolidation companies offer debt consolidation programs where you can enroll yourself if you’re keen on repaying your high interest debt obligations. The debt consultant will take all charges of helping you repay your debts and you don’t have to take any further steps to negotiate with your creditors. They will negotiate on your behalf and you just have to continue making a single monthly payment to the consolidation program which will be disbursed off to your lenders on time.
Therefore, when you’ve taken out too many payday loans and you’re worried about the prospects of getting rid of them, you should consolidate them. Follow the above mentioned options when it comes to consolidating your payday loans but choose the one that best suits your needs.
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