The need to consolidate payday loan debt comes in when people have several loans with high interest rates and they simply feel as if they will never get out of that cash advance debt. This situation happens when they have trouble paying their first loan and they have to roll over that loan and so forth until they have several payday loans.
Are you one of the people who suffer from high interest charges of payday loans. If so, the only way you are ever going to get those loans paid off is to consolidate your payday loan debt so you can lower interest rates and stretch out the repayment period of the entire debt. There are a couple of ways you can do this.
Using a Personal Loan
You can look for a personal loan large enough to cover your debt. If you have something you can put up for collateral then this kind of loan may be possible. If you can’t get a personal loan on your own then you may be able to get one with a consignee that does have excellent credit.
When asking someone to co-sign on a loan for you, you should try to have something that shows them just how you plan to pay off this new loan without them getting stuck for your debt.
Getting a Home Equity Loan
Another option is getting a home equity loan, if you own your own home. If you have a lot of equity in your home then you may be able to get a large enough loan to pay off all those payday loans at one time. Just remember that if you fail to pay this loan you could lose your house.
Going to a Debt Consolidation Company
As a last resort you could try going to a debt consolidation company. The problem is that these companies charge you for consolidating the loans and you still may not get any lower interest and have to pay just as large an amount and all at one time.
There are free companies that are set up just to help people like you and they will try to negotiate to reduce your debt. But there is no guarantee that the payday loan debt consolidation company will go along.
Finding Money to Consolidate Payday Loan Debt
The best bet may be simply to sell whatever you can on eBay and through rummage sales. You can also cut back on your expenses and try to pick up what ever extra work you can.
Just pool all this money and pay off as many of those loans as you can then try to get a loan from a friend or a family member to pay off the rest.
It certainly won’t be easy but, with perseverance and a little sacrifice you can consolidate payday loan debt or at least some of them and get out of debt.