Payday Loans Debt Consolidation

The Best Way To Consolidate Pay Day Loan Debt

The main reason why you are unable to come up with a solution to consolidate pay day loan debt is probably because you are over stressed due to the kind of situation you are in. So, the first thing you have to do is to relax. Take a deep breathe and think with a calm head. Just worrying about the problem is not going to bring any solution. There are plenty of ways out there that can help you deal with your debt problems on your own without much difficulty. All you need to have is the right approach with a strong determination to achieve a debt-free life. You will find the following information very useful in this regard.

Get A Realistic Picture Of How Much Debt You Currently Owe To Different Payday Lenders

In order to consolidate pay day loan debt, the first thing you have to do is to find out how much debts you currently owe and how much the overall debt balance will be after a month. Write down all the details on a paper. Keep the payday loan account with the highest rate of interest at the top.

Review Your Monthly Income And Expenses

The next step is to repair your finances. You have to find and block all those holes you hard earned money is leaking from. This is what we call budgeting. Most people understand the significance of this B-word and still hate it, but this is high time you must do some serious budget planning. Budgeting is all about getting yourself financially disciplined, which is the most crucial step when it comes to achieving a debt-free life. Be realistic with whatever you plan. A realistic budget plan will help you find out the best way to consolidate pay day loan debt. The basic concept can be explained in one sentence – you have to reduce your monthly expenses to as low as possible and increase your income to as high as possible. There can be an array of ways to boost your income, such as by getting a second job, working part time, or working as a freelance professional. Likewise, cutting down your expenses to minimum may sometimes means practicing frugal living, which is not a bad idea. You can start spending more after a few months when you get some decent control over your debt and financial situation.

Break The Cycle Of Debt

Before you starting working on a way to consolidate pay day loan debt, you also need to break the cycle of payday debts, which means you must not borrow new payday loans anymore. Borrowing new payday loans at this stage may bring you some temporary relief, but the next month will be much more problematic for you.

Find Out How Much You Can Afford To Pay Every Month

Next, you have to do a thorough calculation and find out the amount of money that you can realistically afford to contribute every month toward your payday debts. Your budgeting plan will get you a clear picture about it.

Borrow A New, Big Conventional Loan

You can consolidate pay day loan debt by borrowing a conventional loan, such as a personal loan or a home equity loan. The amount of this new loan obviously will have to be big enough to cover all your payday debts. This way, you will be able to pay off the entire debt on your payday loan accounts at once. This is very much like converting multiple predatory lending programs into a single and easily affordable conventional loan. A conventional loan allows you to repay in easy monthly installments. Even the interest rate is almost negligible as compared to the interest charged on payday loans. Just make sure that the monthly payments required for this new loan is something you can easily afford.

Overall, as you can see, if you sit back, relax, and think with a calm head, you do not have to go anywhere to find out a solution on how to consolidate pay day loan debt on your own.


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Posted in Consolidating Payday Loans, Payday Loans Debt Consolidation | 1 Comment »

One Response to “The Best Way To Consolidate Pay Day Loan Debt”

  1. Robin says:

    Pay day loan has become necessity for the people earning fixed salary per month . These people need some times instant cash for their medical needs or any other emergency. Due to very high interest rate, it becomes impossible to repay the loan at the time of net pay checks and the debts starts collecting. When ever you plan to go for pay day loan debt consolidation, first do a thorough study of your debt position. It means you should have a very clear picture of your all the loans then you have to calculate the total expenses of your self. Budgeting will help you in managing your home expenses and making some easy way to save some little bit extra money. The whole process will work only if you are fully sure that you will not take any new loan otherwise it does not mean at all. Now, you can take the help of a consolidator who will suggest you the best path to follow and reach your destination of debt free life. Consolidation process can only become successful if you can reflect some great zeal of financial strictness in the every aspect of you and your family .

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