More than 12 million Americans take out payday loans, every year. So, if you’re in the process of paying back one of them, you’re certainly not alone. What makes payback even more difficult is the issue of multiple loans. Believe it or not, many people take more than 10 loans, annually. Read further, to learn more about coping with multiple payday loans. It is possible!
One of the most convenient ways to pay off this type of loan is loan consolidation. There are actually two different options, payday loan consolidation programs and payday consolidation loans.
A payday loan consolidation program is one in which the organization you choose as a spokesperson works with your lenders to try to reduce both your interest rate and fees. The more your interest rate is reduced, the lower your payments and your payback amount will be.
A payday consolidation loan allows you to borrow the money necessary to completely pay off the loans. You then make payments to that lender. The benefit to this is that these payments are usually more affordable, have a lower interest rate and are spread over a longer period of time. Consolidation also eliminates calls from collection agencies and helps to improve your credit score.
Regardless of which option you choose, it’s important to work with a legitimate organization or financial agency. Unfortunately, there are many scammers who prey on people who are down on their luck, financially speaking.
Bringing in extra income is another way to deal with more than one payday loan. Consider getting a part-time job or selling some of the belongings that you no longer have a need for. In this case, every extra dollar you make helps you pay off the debt earlier. Not only that, having a garage sale is a great way to clean out your cluttered attic, garage and closets in one fell swoop.
If you don’t want to work away from home, consider earning extra cash by offering some type of service. Almost everyone has at least one skill that others are willing to pay for to learn. It might even be hobby such as painting or woodworking.
Posting an ad on free sites such as Craigslist.com is an easy and affordable way to garner potential clients.
In the event that you don’t qualify for loan consolidation and don’t have time to get a second job, contact your payday loan lenders. There is a slight possibility that one or more of them will be willing to lower your interest or give you more time to pay. This doesn’t happen often. However, it never hurts to ask. The worst that can happen is you’ll be told no.
As you can see, it really is possible to deal with multiple payday loans without losing your sanity. The most important thing to remember is that paying off this debt won’t happen overnight. But, by cutting down on other expenses and concentrating on getting these high-interest loans paid off, you’ll soon see light at the end of the tunnel.