Before I say anything else, let me emphasize the fact that no payday loan borrower should ever have to face the situation wherein he has to resort to the consolidation of his payday loan debt. This is not the default choice. Why do I say this? Simply because of the fact that, if used properly, payday loans should HELP you get through emergency financial situations and NOT place you in a deeper financial problem. The operative words here are SHOULD and IF USED PROPERLY.
However, as well all know very well, the ideal situation does not always come about. For whatever reason, some people find themselves in financial trouble – whether it is because of payday loans or any other types of loans. So, if you already find yourself in a bind, do not beat yourself up for it. Instead, I suggest that you find a solution as soon as possible in order to deal with your payday loan. One such solution is payday loan debt consolidation.
I am sure that you have heard about debt consolidation – it has been a popular topic for many years now, especially when it comes to credit card debt. Though people with immense credit card debt are the ones who usually use debt consolidation services, people with payday loan related problems can also avail of the help offered by debt consolidation.
How does it work? For example, you took out one payday loan to take care of some urgent bills. Then you found yourself unable to pay it off so you took out another payday loan. Pretty soon, you found out that you were unable to deal with both payday loans at the same time, so you took out another one. This cycle could go on and on and before you know it, you are up to your neck in payday loan debt. What do you do?
If you have some sort of savings stashed away – something that you promised NEVER to touch, no matter what – then I suggest you throw away your promise and pay off ALL your payday loan debt. If you do not have this option, then you might as well seek the services of a debt consolidation company. This type of company specialises in lending money to people who have several debts and cannot afford to pay them off due to high interest rates or charges. What happens is that they pay off ALL or PART of the existing debt. The implications for the borrower are as follow:
-the borrower will be accountable to only one lender
-the borrower will only have to worry about one payment for each period
-the borrower will only have to worry about one interest rate
-the borrower will have a new loan, which has a lower interest rate
-the borrower will have to face better repayment terms
Some people feel iffy about having to take out another loan to pay off existing ones – this is but logical as taking out one loan to pay for another is what probably got them into this situation in the first place. Sometimes, though, you just have to get what you can take in order to solve a problem.