Payday Loans Debt Consolidation

Bad Credit Payday Debt Consolidation Loans

It is usually very difficult to qualify for bad credit payday debt consolidation loans, but if you follow certain strategies, you may be eligible to use such debt relief solutions. Though there are hundreds of consolidation agencies available in the market, they often do not entertain borrowers with bad credit. They consider it as a very risky venture. Since such consumers are already trapped in a vicious cycle of payday loan debts and they do not even have a decent FICO score, it is very difficult have trust in their financial capability to make timely payments even as per a consolidated repayment plan. However, you do not have to be disappointed. Following are some of the best options that you may like to consider in such cases.

Borrowing A Secured Loan

It becomes very easy to qualify for bad credit payday debt consolidation loans when you are willing to offer something as security. You can put your home or car or any other expensive asset that you own as collateral against the money you are borrowing. In fact, with this strategy, you do not even have to work with a debt consolidator. You can apply and obtain a home equity loan independently and then pay off all your existing pay day debts with the money thus received. This way, you can easily replace your multiple payday loan accounts into a single home equity loan. You will have just one lender to deal with instead of multiple payday lending companies. Besides that, you will have to make a single consolidated monthly payment. Even the interest rate on a home equity loan is very low, almost nothing as compared to the APR charged on payday loans. The best thing is that a home equity loan allows you to pay back in easy monthly installments. So, you get a better chance to work on your finances. When you put something as collateral, lenders do not check your credit score at all because the collateral covers the risk.

Many agencies these days specialize in bad credit payday debt consolidation loans, but most of them will require you to put an expensive asset as security.

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