We all are aware that the only to truly getting rid of debt is if we start paying it back. There are times however that no matter how much we want to pay back our debts, the amount we earn is no longer sufficient to do so. This is often the reason why many people take the risk of using payday loans to continue paying off debts and at the same time have enough money to keep food on the table. Payday loans are usually short term, which is a hwy a single missed payment could mean high interest rates being charged on your debt. If you are not able to repay it, you could be in serious debt trouble. To help resolve this, you can try consolidating payday loans.
When you consolidate your payday loans, you are using another loan to pay off your whole payday loan. This will help you to escape being charged with high interest rates and fees when you still don’t have the money to repay the payday loan in full. If this is a method that you are considering, then below are some of the options that you have to help you consolidate your loans.
Get a secured debt loan – One of the most common type of secured consolidation loan is the home equity loan. When you still have enough equity to pay off your payday loans, then you can try to apply for this and finally pay off your previous loan. When taking up this option. You just have to make sure that you will be able to repay it or you could ultimately lose your homes.
Try to get a personal loan – When you have no property whatsoever to help serve as a collateral for a loan, then you can try to get a personal loan. A personal loan does not need to be a loan taken from the bank; you can also try to borrow money from your friends or relatives who are willing and stable enough to help you with this problem.
Use a credit card – Although credit cards are known to carry high interest rates, there are still those cards that can offer you much lower rates than your payday loans. You can try to look for those that offer promotional rates or those that do not charge annual fees. You can use these cards to repay your previous loans, however you need to be extra careful and wise in using these cards. Most promotional rates are offered for a given period of time, so you need to make sure that you will be able to repay it before regular rates are charged.