Payday Loans Debt Consolidation

Best Options For Payday Loan Help Debt Consolidation

The concept of consolidating debts is not new, but it is only for the last few years, when companies have started offering payday loan help debt consolidation programs also, which have specifically been designed as a debt relief solution to those who are going through extreme financial hardship and thus are eventually trapped into the viscous cycle of payday loans. But, it is very important for you to keep in mind that in order to consolidate your payday debts, you do not necessarily need to sign up with a specific company. If you approach it the right way and use the correct strategies, you can do it on your own also. Following is a brief rundown on three best options that you may like to consider in this regard.

Turn Your Home Equity Into Cash

This option is available for those who are fortunate enough to own a home and also have a more than decent amount of equity on it. In this method of payday loan help debt consolidation, you just have to convert that equity into cash so that you can pay off the debts that you owe on multiple payday loan accounts. You can turn your home equity into cash by taking a home equity loan. This is a secured loan where you have to put your home as collateral. The best thing is that you can easily get a low-rate loan by putting your home as collateral. When you pay off all your payday debts, you will be left with just one debt account to handle, where the interest is charged at a comparatively very low rate. Besides that, unlike payday loans, home equity loans do not involve any unfair practices, such as unusually high penalty charges or rollovers. There are no such risks associated with a home equity loan. You instead get a chance to make the repayment in small easy monthly installments over a certain period of time.

Replacing Your Payday Debts With An Unsecured Personal Loan

Even if you do not own a home, you need not be disappointed. You can still use the method of payday loan help debt consolidation to get out of the viscous cycle of payday debts. An easy to do this is by taking an unsecured personal loan. The interest rates on these loans are usually a little higher than the rates charged on home equity loans; still, if you compare the rates with what you are being charged on your payday loan accounts, you will be glad to see that the rates have dropped down to a very low amount.

If none of the above two options work for you, you have a third option, where you can sign up for a payday loan help debt consolidation program with a debt consolidator. There are plenty of such agencies available out there in the market. Even if you have bad credit and cannot qualify for personal or home equity loans, these agencies may still issue you a consolidation loan, which will eventually help you get rid of your debt problems.

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