Payday Loans?
If you have found yourself in a difficult financial situation, it is likely that you have turned to payday loans. It is easy to slip into a debt spiral with such high-interest loans, and it’s natural to search for relief. Some people turn to consolidation loans. However, you may find yourself asking, “Should you consolidate payday loans?” There is no one solution to payday loan debt, and this blog will outline a few of your choices.
Consolidation Payday Loans
A consolidation loan puts all your loans into one place. Numerous high-interest loans become one manageable sum. Payday loans are often accompanied by feelings of overwhelm, guilt, and shame, so it can be empowering to have a sense of control by being fully aware of how money is flowing in and out of your bank account.
Consolidating payday loans works best when you have other debts with which to combine them into a new loan. You can then take part of the proceeds of that new one bill consolidation loan to eradicate the payday debt along with the others. This will give you a lower interest rate and fewer bills to pay each month.
Of course, all of this hinges on you having a really good credit score, or some collateral that will make giving you a bill consolidation loan an attractive proposition for a lender. As for collateral though, it’s advisable to avoid trading unsecured debt like a payday loan for a loan secured by your home.
Turn to the website www.bills.com for different loan options (both consolidation loans, and beyond).
Alternative Options
Another consolidation option that is available to you is using a 0% balance transfer credit card for credit card deb. These allow you to transfer high-interest balances onto them (as payday loans often are) making repayment a whole lot more manageable. This could be a good option if you did not take out a lot of money with your payday loan (less than a thousand dollars) or if you do not have a home or mortgage to place as collateral for a consolidation loan.
If the above choices are not available to you, a good option is contacting your other creditors and negotiating repayment arrangements with them. This could make it easier for you to satisfy the payday loan debt. Start by paying towards the smallest loan first, before moving on to the next one, until your debts are cleared.
If the creditors are unwilling to negotiate regarding repayment, turning to your bank is vital. Your bank should block the checks that you ask them to and may even provide you with an overdraft to cover the costs until you are able to afford them.
Mental Health
Although paying off debts is important, payday loans are notoriously difficult to navigate. Hundreds of thousands of people are currently indebted to such creditors, and for this reason it is important to keep some perspective. It is vital to place your mental health and physical safety first. Ensure that you have shelter and food first. Trust that your creditors, helpful websites like www.bills.com, and your bank will be there to support you through paying back loans, and though it may take time, there are options and choices available to you.
Although you may find yourself overwhelmed with debt due to payday loans, there are lots of options available to you, from a consolidation loan to a balance transfer card. So, if ever you wonder, “Should you consolidate payday loans?” reading the tips above will tell the answer is; “It depends.”
