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.
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.
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.