Payday Loans Debt Consolidation

Is It Possible To Settle Payday Loans For Less?

In extreme cases, where the total outstanding balance on the multiple cash advances that you have in your name is an overwhelming one, something that you cannot repay with the kind of monthly income you have, your creditors may consider your request to settle payday loans for less. However, not everybody can qualify for it. You need to follow a set procedure and work on some effective strategies to determine whether this option can be available for you or not. If this option works for you, it can help you save a great deal of money while you will also be able to pay off your debts faster. If the negotiations with your creditors do not work in your favor, you can still have some options that can allow you to settle your debt for less. Following is a brief rundown on it.

Try To Repay Using A Credit Card

Your credit card can help you to turn your extremely high-rate payday loans into a single low-rate loan. It is very important for you to keep in mind that payday debt grows very fast because of the sky-high rate of interest charged on it. Therefore, if you want to settle payday loans for less, you will have to look out for ways that can help you pay off your debts faster. You can get an advance using your credit card to pay off your payday lenders in full. This way, you will now have a single debt account in the form of credit card debt. If you compare, you will find that the interest rate charged on credit card debt is significantly much lower than what is charged on payday loans. Besides that, credit cards also offer you the convenience to make just the minimum payments and carry on. Though you are advised against using this convenience, if you do not enough amount of cash to make the repayment in full every month, you can consider making just the minimum payments for a couple of months, but make sure you do not do it for long else your debt situation will soon get out of your control. You must do your best to pay off the credit card debt fast, such as by cutting down your expenses, getting a second job to increase your income, arranging a garage sale, and other such things. All such strategies will help you get some extra cash, which you can use toward the debt repayment.

Obtain A Big Secured Loan

Alternatively, you can consider obtaining one big secured loan, such as home equity loan, in order to settle payday loans for less. Obviously, this option is viable for those people who have some equity in their home. But, this option can also be a little risky, as the process requires you to put your home as collateral against the money you are borrowing. It means if you make defaults on monthly payments, you may end up losing your home in foreclosure. Therefore, you are advised to go for this option only if everything is well planned and there is no chance of making any default.

Obtain An Unsecured Personal Loan

If you find the option of secured loan a risky one, you can consider obtaining an unsecured personal loan from a reputable bank. The interest rates charged on an unsecured personal loan is much higher as compared to what is charged on a secured loan, but it is much lower than what you pay as interest on your credit card debt.

Overall, if you are looking out for ways on how to settle payday loans for less, there can be an array of options that can consider.

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