How To Get Rid of Payday Loan Cash Advance Debt
A payday loan or cash advance is basically supposed to be used as an emergency loan that you can receive to give you enough money to get by until your next payday. Unfortunately, many people have fallen behind on these payday loans and their outrageous 100%, 200%, 300% APRs and up. Payday loans can be great to get you through an emergency, but if you cannot pay off the balance quickly, you may be paying a lot more than you planned. Getting rid of payday debt can then become difficult to do, but it can be done.
Consolidating Payday Loan Debt
One of the most popular ways to get rid of payday debt is by consolidating debt. Many companies offer debt consolidation loans that will allow you to have one fixed monthly payment. This simply involves taking multiple debts with higher interest rates and combining them into one larger debt with a lower interest rate.
This will allow you the chance to only have one payment each month, and this strategy will help you to possibly pay a little more each month on the loan. It is also a great way to reduce interest rates for all of the loans that you are consolidating.
The lender that offers you a consolidation loan will be able to actually try and relieve some of the debt as well. This is usually known as debt settlement or debt negotiation. There are many benefits to consolidating your debt, but make sure that you think wisely before going forward with this strategy.
Credit relief is another option. This is not always as obtainable as a debt consolidation loan. Getting relief will involve a lot of time and paperwork, but it might work out for you. The primary problem with simply getting credit relief is that as the Federal Trade Commission shares, it could have a negative impact on your credit report. Credit relief also requires you to verify many things regarding your finances, and it may not always be the best option. It is worth a try to get as much relief though as you can get. Call your lenders and see if they can help you out first with some relief. If they cannot help you, there are plenty of companies online and in your local community that can probably help.
Debt consolidation can also be accomplished with your credit card companies. Many companies will offer you a great rate for a limited amount of time. If you simply need more time to get the loan paid off in full, this may be a great option for you. Be advised, however, that the loan rate will likely spike after a certain amount of time.
Many lenders offer rates as little as zero percent for a year. Some even extend the time repayment period. You will want to make sure that you are able to pay off the loan in that time because some of the interest rates get very high after the introductory period. Always be a wise consumer and make the best financial decision that you can make for your current and future situation.
BUT if you have good enough credit to get a zero interest APR credit card you probably would not need a payday or cash advance loan in the first place. So this may be out of your reach.
Settling And Paying Off Payday Loan Debt
Paying off a payday loan can be troublesome if you get behind. The interest rate is usually quite high, especially if you have fallen behind on your payments. There are even instances where they charge 700% interest rate as shared by CNBC. Do whatever you can to get out from that debt as soon as possible or the money that you owe will continue to increase.
Payday lenders do negotiate and settle loans. It doesn’t matter if the lenders are from Texas, California, New York, Illinois or Pennsylvania. They want to get paid and will settle your debts for less than full balance. We can provide recommendations of the top payday loan consolidation companies that get favorable settlements with cash advance lenders all the time.
Consolidating your debt or getting debt relief are two good ways to get out from under the payments. You can also try to save enough money up each month. You can then pay the cash advance loan down the best that you can. If you need the help right now on your payday loan, you can search online. The idea is to find a reputable company to help you relieve the payments and the stress.