Are you someone who has taken out too many payday loans in order to meet your mid-month financial contingencies? If you’ve made the mistake of taking out too many payday loans without calculating your affordability, it is most likely that you’re repenting your mistake as you’ll be drowning under a sea of payday loan debt. Payday loans carry outrageously high interest rates as they’re lent to people with poor credit score and who are going through cash-strapped situations. When you’re spending sleepless nights wondering about the soaring payday loan debt, you need not fret as there are options through which you can get out of debt. Here are some of them.
- Get help from a credit counseling agency: When you determine that the total debt amount that you owe is within your control and you can repay it with a little bit of professional help. The credit counseling agent will assess your present financial condition and then advise you on money management, budgeting and some other personal finance tips through which you can get back a firm grip on your finances. You can also repay your debt obligations and live debt free.
- Sign up with a debt consolidation program: When you’re in need of professional help, you may get help from a debt consolidation program. The debt consultant will check your present financial condition and then negotiate with your creditors and convince them about interest rate arbitration. The interest rates will be reduced and instead of making multiple monthly payments, you just need to make a single monthly payment to the debt consolidation program. The payments will be disbursed to the creditors.
- Combine with a debt consolidation loan: You can also take out a debt consolidation loan and combine all your payments into it. The loan will carry lower rates than what you were paying on your payday loans. You can initially utilize the proceeds of the loan in order to repay your lenders and then start repaying your debt consolidation loan in single and affordable monthly payments.
- Tap the equity in your home: Although this is a risky way of repaying your unsecured debts, yet if you can lead a financially disciplined life, you can stick to taking out a secured loan in order to combine your unsecured debts. Make timely payments in order to reap the benefits of lower rates, extended repayment term and tax breaks. Defaulting on the secured loan payments might lead to a foreclosure and hence you should be careful.
- Try some DIY steps: By trying some DIY steps too, you can get rid of your payday loan debt. You can start off by following a budget and curbing your credit card usage. Negotiate with the lenders and tell them about the hardship so that they might put you on a hardship plan through which you can get back on track with ease.
Therefore, when you’re knee deep in payday loan debt, you might take help of the above mentioned debt relief options. Choose the one that suits your needs and budget in the best way possible.
Barbara Delinskey is a financial writer who has immense knowledge on the entire financial world. She loves to contribute her articles to different finance blogs, communities and websites so as to help all those who are going through dire financial straits. Some topics covered by her are avoiding payday loan debt, getting help with payday loans, and many more. To know more about payday loan help you can visit the page http://www.ovlg.com/debt-settlement/payday-loan.html