Payday Loans

Some Very Practical Strategies To Repay Payday Loan Debts

Because of the predatory nature of payday lending programs, most a large number of borrower often end up getting trapped in a viscous cycle of debt. However, it is very important for you to keep in mind that no matter how frustrating your situation is and no matter how hopeless things look, there are still several ways out there that can help you repay payday loan debt in an affordable manner. But, it does not mean that there are easy solutions available out there. If you are looking out for quick fixes, you will be disappointed. Though it is true that there are several companies out there in the market that claim to offer debt relief programs that can help you get rid of all your payday debt problems within a day or two. Always remember, if a solution sounds too good to be true, it probably is. Stay away from such unscrupulous companies. You must do a thorough research first if you are considering signing up for a debt solution program. Following is a brief rundown on some of the practical strategies that can make the repayment of debts much easier and faster.

Borrow A New Loan To Cover Your Debts

The easiest way to repay payday loan debt is to borrow a new loan, a conventional one. The amount of this new loan must be large enough to cover your entire debt. For example, if the outstanding balances on your multiple payday loan accounts amount to $500, $700, $800, and $600, you can consider borrowing an unsecured personal loan of $2600 from a bank. This way, you can easily convert your debts into a single account, which means it will be now be much easier for you to manage your debts and the repayment will also become much more convenient. After all, a conventional loan allows you to repay in small monthly installments.

The worst thing about pay day loans is that they charge extremely high rate of interest. Besides that, lenders also charge hefty penalty charges. That is the reason why the outstanding debt balances grows very fast, faster than you can imagine. Just a single day of delay can cost you over $100, depending upon how many debt accounts you have. When you repay payday loan debt using this strategy, you can instantly put a brake on the growth of debts. Though even an unsecured personal loan also charges annual percentage rate of around 25%, it is almost negligible as compared to the APR of over 600% that payday lenders charge. Even the penalty charges are significantly very low as compared to payday loans.

If you have a decent credit score, you can easily qualify for a low rate unsecured personal loan. It is true that you are trapped in huge amounts of payday debts, but generally, it does not have any impact on your credit score. This is because the majority of payday lenders never report the payment or nonpayment on short-term cash advances to the three major credit bureaus. However, if you have poor credit, you still have an option to borrow a low-rate loan so that you can repay payday loan debt. In that case, you can consider a secured loan, which you can easily qualify for if you have a valuable asset or property that you can put as collateral against the money you borrow, such as a home equity loan.


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One Response to “Some Very Practical Strategies To Repay Payday Loan Debts”

  1. scott says:

    The repayment process of pay day loan debts may not be very easy all the time. Some times the situation becomes very difficult to handle and the repayment of your existing pay day loans appears to be impossible. If you are facing the same problem and you think that there may be some easy and short cut formula of getting out of this problem, you will be proven wrong. No body can provide you a full proof solution and that too in a very short span of time. There are so many debt solution programs present in the market but you have to select the best one for you. First of all, you should do a thorough study of your debts and the mode of repayment which you can adopt. If you have some property which you can use as collateral then you can get a secured loan at a very low rate of interest. Once you get new loan, you can repay all your previous loans. Pay day loans come with a very high rate of interest that’s why it is always better to repay these loans in time otherwise it becomes nearly impossible to get rid of such pay day loans.

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