Finding the Right Payday Loan Consolidation Plan
Having to juggle multiple household bills can often lead too many trying to bridge the financial gap with payday loans. Unfortunately, these types of loans only bridge the gap until the next round of bill repayments, each time building more debt and worsening your financial situation.
Many Americans dealing with financial hardship often think that a cash injection will help eliminate their financial issues. Often times this is the farthest from the true and actually compounds the issue leading borrowers to financial ruin.
If you are currently in serious financial trouble and need help in getting on top of your finances and out of debt, there are things you can do. Depending on the seriousness of your situation, you may want to speak to a financial counselor. Other options can include new repayment terms with the lenders, budgeting or debt consolidation which is described in more detail below.
The first route many people consider when trying to get themselves out of debt is by finding an alternate, low-cost financing solution that can reduce their monthly commitment while paying down the debt. The two most commonly used options are either a personal loan or home loan refinancing. Unfortunately you need to have a home with equity for one and good credit for the other. If you are getting payday loans your credit score may already be compromised.
However, many banks and credit unions have created specialized loans which cater for those who have impaired credit and normally wouldn’t qualify for a general personal loan. Speak to a representative at your bank to see what they may offer as these loans aren’t actively advertised but can be a great solution to consolidating payday loans and other debt.
Payday Loan Consolidators
There are other organizations that specialize in payday debt consolidation that generally include a number of features and options, taking into account your general financial needs for day to day living. First and foremost when looking for a payday debt consolidator, consider the differences they may have in their cost structures (if any), are they competitive and is their fee structure clear and concise (not up front and doesn’t worsen your position). They should have a free consultation and work towards not only lowering your debt-load but also negotiate lowered settlements to lower your overall debt as well as negotiating lowered interest rates.
These companies should also offer a comprehensive debt counselling program for those that need it to ensure that your long term financial health is also considered and they are not planning on having you as a repeat customer. Most importantly the company should also offer to shoulder the negotiations and contact with your debtors freeing you from the onerous task of communicating with some very pushy debt collectors.
It is important for the debt consolidator to be easily accessible to you, for both the management of your finances and any questions or concerns you may have. Having active support that you can rely on for advice in finances can be a great way to get ahead of any financial issues before they crop up. Being able to easily navigate and understand their website, promotional materials and in-person conversations should help you feel comfortable with their service.
Getting out of debt doesn’t have to be difficult and there are numerous DIY options as well as professional non-profit or paid services. Learn about the different debt relief options here and decide on which would be best for you.
*Important: If you are under serious financial stress and are considering a payday loan or other short-term, high interest expensive loan; speak to a free financial counselor first as they may be able to help you find alternative solutions that will work for the short and long term.