Perhaps you experienced a financial setback and were forced to take out a pay day loan. It happens all the time, however, sometimes paying these loans back can be difficult. Pay day loans are short term, high interest loans for relatively small sums of money. These loans are typically used in emergency situations such as car repairs, appliance repair or something similar.
While the immediate cash flow can come in handy, it often comes with a price tag that is too much to pay. When people get behind on their pay day loan repayments it can seem impossible to get back on track.
The high interest rates will eat up all of the payments you have been making toward the loan and you can’t get ahead. If this is your situation a pay day loan debt consolidation loan is the right choice for you.
Where To Get The Best Debt Consolidation Loan
If you have good credit, the best place to get a pay day loans debt consolidation loan is your local credit union. A credit union is going to have lower rates than your typical bank. They also are usually more lenient and flexible with your credit and terms. Therefore, it will be easier to get qualified with them rather than a standard bank.
The lower rates and overall lower monthly payment will help you get back on track. You can pay back the high interest pay day loan and work toward becoming debt free from the loan from the credit union. Standard banks will give you a consolidation loan as well. Keep in mind their terms will be more strict than a credit union and have slightly higher interest rates. These rates will definitely be lower than your pay day loan or credit cards so this may be a good option as well.
If you have a lot of credit card debt and are looking for pay day loans debt solutions there are a few things to consider before accepting the new loan. Sometimes the bank issuing the consolidation loan will make you close your credit cards out once the payments have been made to get the balance to zero. They do this to protect themselves. The banks want to make sure you can pay your loan and they don’t want you to rack up more debt on the cards.
Once the cards are at zero a lot of stress and burden has been lifted from the consumer. He or she may feel that they can spend on the cards again which is not a good idea. Before signing any consolidation loan, be sure to look over the fine print and make certain you do not have to close any of your accounts.
Debt Relief For Pay Day Loans – More Solutions
We have discussed getting a debt consolidation loan for those who have good credit but not everyone is able to do this. If you are a few months behind on your payments it will negatively affect your credit score. This will make it much harder to get a loan to pay off your debts and get you back on track. If you are not able to get ahead and it seems like you are getting nowhere with your debts you might want to consider a debt settlement program.
These programs will contact your creditors and negotiate better terms on your behalf. A good program will also negotiate with them to reduce the overall amount you have to pay. This amount can often be cut down to less than half of the balance owed. Each financial situation is different and the institution will look over your credit profile and determine the plan for you.
At Sunbeam Financial we have helped hundreds of people get pay day loans debt consolidation and relief. Our partners at Curadebt can take the stress off of you by reconstructing your debt. They offer a free evaluation and will give you a road map to get you back on track at no cost to you. If you are overwhelmed by pay day loans and credit card debt, click the link below to get started.
=> Curadebt Pay Day Loan Debt Relief <=
Sunbeam Financial has partnered with Curadebt because of their excellent customer service and their vast history of helping people achieve their financial goals.
