After the recent financial upheaval, when people are not being able to manage the finances and pay for monthly bills, they are relying more on payday loans. Payday loans are loans intended to meet the immediate expenses until the next paycheck comes. These loans are easy to obtain and do not involve any paperwork. Thus, people are obtaining these loans in a large scale, and sometimes even taking out multiple loans at a time, which later on sometimes results in making the loans unmanageable. However, the good news is payday loans can be consolidated into a single monthly payment in order to make it easy to pay off. So let us take a look at how to consolidate payday loans through debt consolidation.
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If you own a house and have equity in it, consider taking out a home loan or home equity line of credit to consolidate payday loans. This kind of loan usually comes with a lower interest rate that helps people achieve a lower monthly payment. So consumers having thousands of dollars in payday loans can take advantage of this option to consolidate the loans.
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The balance transfer is also a great way to consolidate your payday loans. So find out a card that offers you zero or low interest rate. This will help you manage your payday loans by making a single monthly payment and paying less in interest charges and fees. This will also help you in saving money in the long run. However, to find suitable credit card offers, take advantage of the websites, such as Bills.com.
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You may also look for private lenders who are willing to lend money to private borrowers. Go online and visit various websites to find such lenders. However, it is to be mentioned that getting money from private lenders is not an easy task and may take through several processes, before you actually succeed.
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Taking a personal unsecured loan out is also a great way to consolidate your payday loans. This can be a great option to consolidate loan as it does not require you putting collateral against the loan. But having a good credit score is must to acquire this kind of loan. So people who do not have fair credit cannot opt for this option.
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Another great source to acquire money to consolidate payday loans is friends or family member. Ask for sufficient amount from them so as to consolidate the entire payday loans. However, while acquiring the loan, make sure you get everything in writing in order to avoid future misunderstandings. If possible, also try to include interest rate to make the loan more official.
Thus, it is to be concluded by saying that above mentioned are some of the debt consolidation ways through which you can consolidate your payday loans.
