Three Excellent Ways To Consolidate Payday Debts
There can be an array of ways to consolidate payday debts. The most common method is to sign up for a consolidation program with a payday debt consolidation company. Alternatively, you can negotiate directly with your lenders. The third most common method is to borrow a low-rate conventional loan, such as an unsecured personal loan or a home equity loan. Following is a brief overview on each of these three methods.
Hiring A Professional Payday Debt Consolidator
There are hundreds of payday loan debt consolidation companies in the market that offer a wide array of debt relief programs to consolidate payday debts. These companies negotiate with your payday loan creditors on your behalf and eventually an agreement comes into effect signed by you, the debt consolidator and your creditors. As per this agreement, you are supposed to make a single consolidated monthly payment to your debt consolidator who further disburses the payment to your respective creditors. This agreement is finalized in such a way that your creditors agree to reduce the rate of interest and waive off penalty charges. This way, you get an opportunity to pay off your payday debts easily. However, the debt consolidation company charges a specific amount of fee for this service.
Negotiating With Your Payday Lenders
Negotiating with your payday lenders is also one of the best ways to consolidate payday debts. This task of negotiation can be much easier if you are aware of the legal rights that the payday loan laws of your state have provided to you. It is no more a hidden secret that the majority of payday loan companies violate laws. If you find any violation off laws on part of the lender, you can talk to them about it. If they don’t agree to correct things and don’t make the repayment terms affordable for you, you have the option to take legal actions against them. Even if everything is in compliance with the laws, you can still talk to your lenders and discuss your financial problems with them. Always remember, no lenders want their borrowers to go bankrupt. Genuine lenders will definitely listen to your problems and allow you to make the repayment in a way that is affordable for you.
Borrowing A Low-Rate Conventional Loan
He third most common way to consolidate payday debts is by borrowing a low-rate conventional loan. If you have a good credit score, you can qualify for a low-rate unsecured personal loan, but the rates can be much lower if you go for a secured conventional loan, such as a home equity loan. The best thing about a secured loan is that you can qualify for best rates even if you have a poor credit history. The only problem with secured loans is that you an end up losing your asset that you have put as collateral in case you fail to repay the loan as per the agreed repayment plan. Therefore, you are advised to go for this option only if you are sure that you can make the repayment as per the scheduled repayment plan without any difficulty.
In order to make an informed decision about which of the above options make the most suitable choice, you must review all the options thoroughly while keeping your specific financial situation in mind.