Payday Loans Debt Consolidation

Can I Consolidate Payday Loans? If Yes, What Are The Best Ways To Do That?

? The answer is yes, but before we discuss the different ways to do that, it is very important for you to keep in mind that consolidation of debts is not a magical wand that will help you get rid of all your debt problems in an instant. If you are looking out for quick fixes, I am sorry, there are none.

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Whatever way you choose to go for or whatever strategies you implement, it will take some time. Most importantly, during this period, you must demonstrate some great financial discipline. You will also need a strong dose of self-determination. In general, you have two options – you can either get help from a debt consolidation company or choose to handle things on your own. Following is a brief rundown on the pros and cons of these options.

Programs Offered By Debt Consolidation Companies

When someone asks, “Can I consolidate payday loans?” they often mean to ask if there are any programs available out there that can help in getting rid of their debt problems resulting from short term cash advances. Fortunately, there are many companies in the market that offer these types of programs, but unfortunately, very few of them are genuine ones. Therefore, you have to be very careful if you choose to go for this option. Before you sign up for any program, make sure you do a thorough background check. For details on how to do this, you may like to read this article “”. As part of these programs, the company will negotiate either a repayment plan or a one-time settlement with your creditors (payday lenders). If the lenders agree for a repayment plan, it means you will have to pay the outstanding dues (usually the penalty charges are waived off, but not guaranteed) in small monthly installments for a certain period of time. In case of one-time settlement, the payday lenders may agree to settle your debt accounts by accepting less than the actual outstanding due. Depending upon the negotiation skills of the company, this amount can be anywhere between 30% and 90% of the overall outstanding dues. This way, first you have to find out a legitimate company and then you will have to choose a suitable program. It is also important to note that these companies offer their services for a fee, which can be substantial in many cases. Therefore, you are strongly recommended to study the agreement thoroughly before you sign it. In brief, this option may just work only if you are lucky to find a genuine company and a suitable program. But again, you will still have to do some tight budgeting and show some great financial discipline in order to let this option work.

Do-It-Yourself Approach

When you ask, “Can I consolidate payday loans?” you are probably not thinking about handling your debts problems on your own. But, if you really want to pay off the mounting debts acquired through short-term cash advances and are ready to put in some serious efforts, the do-it-yourself approach can be the best option for you. This approach requires you to do everything on your own, whether it is debt management or negotiating with your payday loan creditors. You will need two things – a plan and fund. Arranging fund should not be very difficult if you implement some solid budgeting strategies. Cut down your expenses to minimum. Practice frugality, if needed. Get the money out of your retirement account. It seemingly may not be the best financial move, but in this case, you may consider going for it. There is no sense in keeping a high amount of money sitting idle in your retirement account while you are drowned in high rate debts that is growing very fast with every passing day. You can build your retirement account again once the debts are paid off. Last, but not the least, you may also consider getting a second job. Once you have some fund in hand, you can contact the creditors and propose a plan – it can be a repayment plan or a one-time settlement. Your success though will mainly depend on your negotiation skills.

Overall, the answer to the question “Can I consolidate payday loans?” is definitely yes, but whether the road to a debt-free life is smooth or not will depend on one thing – how determined you are to achieve your goals.

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Posted in Consolidating Payday Loans, Payday Loans Debt Consolidation | 4 Comments »

4 Responses to “Can I Consolidate Payday Loans? If Yes, What Are The Best Ways To Do That?”

  1. sifi says:

    Debt problems are something that everyone wants to get rid of as soon as possible. Both the approaches you discussed here are very beneficial to know. Suppose I accept a program offered by the debt consolidation companies which give me the opportunity of one-time settlement, then how much amount I have to pay to that debt consolidation company?
    As per this article, in one-time settlement the payday lenders agree to accept 30% to 90% of the overall outstanding dues, then how will they get benefited from it? The fees that is to be paid to the debt consolidation companies is payable by us or it is a mutual agreement between the debt consolidation company and the payday lenders?

  2. free background checks says:

    Excellent brief It’s nice to know people who can write with clarity!

  3. background check free says:

    Excellent post Good to see there are still people how can write a concise summary!

  4. Stephen says:

    The best way to consolidate your payday loans depends upon you. Your financial discipline can change the whole scenario. It’s a time consuming process which needs a lot of planning and thorough study of the whole program. Consolidation process can be done by any company but the company should be selected after a thorough investigation, because mostly the fake companies are present in the market. Genuine company can be very beneficial for you; the company uses their negotiation skills to get you the best deal with your creditors. But these companies charge a good amount so it’s up to you that you should have taken each and every thing in a written agreement and study it thoroughly. Consolidation program can be executed by you. You can plan this program step by step. First of all make a proper list of your multiple loans and the rate of interest, now do the sorting according to decreasing order of amount. Now next step will be to arrange the money, you can get the amount from your deposits or other funds and once you repay your debts, you can again save the money in funds. But be careful about your expanses and try to save money.

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