Payday loans are extremely convenient financing options through which you can get immediate cash when you’ve been turned down by all other conventional loan lending lenders. All of us go through tough financial situations when we need immediate cash and this is when we require taking resort to payday loans. Payday loans are short term loans that are lent to people who are in need of cash and are not getting such loans from the conventional lenders. However, due to the extreme convenience of borrowing payday loans, there are too many people who are drowning in a payday loan debt hole as they’re not being able to make timely payments. If you’re someone who is going through such dire financial straits, you can either try to combine your payday loan obligations or try out some other options.
- Calculate your total debt amount: The first step that you can take is to calculate or determine the total debt amount that you owe your payday loan lenders. Jot down the total principal balance and the interest rates that you’re paying on them. Unless you know the total amount, it would be impossible to take any further step.
- Negotiate with your payday loan lenders: If you’re of the opinion that the payday loan lenders won’t help you when they know that you’re going through a hardship, you’re probably mistaken. As they’ve lent you the money, they will certainly help you in order to get back the money from you. Tell them about the hardship that you’re going through so that they might help you with a hardship plan through which you can get out of debt. You just have to cooperate with them.
- Take out a debt consolidation loan: You can take out a debt consolidation loan and combine your multiple payday loans into a single monthly payment. The interest rates on the debt consolidation loan will be much lower than what you were paying on your multiple payday loans. With this loan, you can combine all your monthly payments into a single payment. Instead of making more than one payment, you can do with making a single payment towards the debt consolidation loan.
- Opt for debt settlement: When you want to reduce the total debt amount, you can opt for debt settlement. Here a portion of the debt amount will be waived off by the lenders and this will reduce the total principal balance that you owe. You can repay with ease and according to the rule, you have to repay the remaining amount either in a lump sum or in single monthly payments stretched throughout a long period of time. This option hurts your credit score and hence you should take resort to this option only when you don’t have any other choice.
So, when you’re drowning in a sea of payday loan debt, you can take the above mentioned steps. The more you stay away from debt; the better will be the impact on your credit score. Hence choose any of the above mentioned options based on your present financial condition. Whichever option you choose, ensure repaying on time to avoid a bad hit on your credit score.