Payday loans seem to be one of the most convenient financing options for all those borrowers who go through tough financial times during the middle of a month. They are short term loans that are usually taken out in order to meet our mid-month financial woes but when we start getting addicted to such payday loans; we gradually fall in debt, outrageously high interest rates.
Payday loan lenders accept all credit scores
Payday loans are lent to people with poor credit score and hence the lenders try to reduce their risk by charging higher rates from the borrowers. You would rather love to know the ways in which you can consolidate your payday loans in order to let go of the debt burden, when you’re drowning in a sea of debt. Here are some ways you might choose.
Take out a debt consolidation loan: You can take out a debt consolidation loan and combine all your payday loans into that single loan. The debt consolidation loan will carry drastically low interest rates than what you were paying on the individual payday loans and therefore, it will be possible to save your dollars on the entire transaction. When you take out a debt consolidation loan, you can easily repay the entire amount in easy and affordable monthly payments. Instead of making multiple payments to multiple creditors, you just have to make a single payment to the debt consolidation loan.
Transfer your entire balance: You can even transfer your entire balance to a low rate credit card so as to reap the benefits of lower rates and lower monthly payments. The balance transfer card carries a nominal rate for a particular period of time and this is known as the introductory period. Before choosing a balance transfer card, you should read the fine print so that you may be aware of the time within which you should transfer the entire balance to the new card.
Sign up with a debt consolidation program: You can even sign up with a debt consolidation program so that the debt consultant negotiates with your lenders on your behalf and tells them the hardship that you’re going through. You just have to give them the details of the credit card accounts so that they can speak to your creditors or lenders. Here too, you can repay the entire debt burden in easy and affordable monthly payments throughout a stretched period of time.
Therefore, when you’re wondering about the ways in which you can get out of the payday loan debt, you can try choosing any of the above mentioned options. Choose to consolidate your debts through the debt consolidation options mentioned above so that you don’t hurt your credit score in the long run. Manage your personal finances at the same time so as to help yourself repay the loans on time and secure a debt free living.