Consolidate Payday Loans: 4 Options to Consider

[Aug 20, 2009.]

 

The word is out about how easy it is to acquire payday loans for financial emergencies. In fact, the simplicity of the process and the virtual guaranteed approval has resulted in some consumers having to manage several payday loans simultaneously. If you’re looking to combine those loans into one easy payment, here are some options that will allow you to consolidate payday loans.

Payday loans certainly have their place in money management. Unforeseen medical expenses, day-of auto repairs and other surprise costs can put a bind on consumers who rely on a fixed income to make ends meet. But what happens when you accumulate several payday loans and the resulting confusion makes managing them a daily hassle? The answer? Consolidate.

1. DebtShopper advises free loan consolidation services. Most of these organizations are non-profit, meaning they exist only to help consumer negotiate better rates with payday loans lenders without selling additional products or services. In special circumstances, the company will combine your loans and back them with one of your assets to give you more bargaining power.


2. The Banking and Loan section of About.com reveals a variety of strategies to consolidate payday loans worth your consideration. These are tried-and-true methods that consumers have used successfully in the past to simplify their repayment process. One popular option is the Snowball Technique. Make minimum payments on several accounts and concentrate the bulk of payments on the payday loans with the highest APR.


3. Pressemitteilung suggests using the equity in your home as a means to consolidate. For most consumers, home equity is their single greatest asset. While banks are reluctant to offer traditional loans in this uncertain economy, they’ll typically facilitate home equity simply because the collateral is already in place. A word of warning--default on a home equity loan and you could lose your house in the process.


4. A final option is to go to your payday loans lenders and negotiate directly. When they see that you’re willing to make good on your debts with them, it’s possible that they’ll relax some terms in order to recoup some of their losses. That could mean extending the period of repayment or dropping the APR on the loans to friendlier terms. This action could save you hundreds or thousands of dollars in the long run.

The bottom line? Take action. Mulling over the cloud of debt only lengthens the process and worsens the circumstances. Decide now to take control of your financial situation and consolidate payday loans using one of these effective tactics.

 

About Author:

Kelly Richardson is a freelance writer, marcomm consultant and digital entrepreneur. He’s written content for Fortune 500s Google, Yahoo!, Microsoft and Wells Fargo. Find out more about him at kellyrichardsoncopywriting.com.