Consolidate Payday Loan Advice and Help - The Bills.com Blog
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Consolidate Payday Loan Advice and Help
Question: Will I get approved for a loan to consolidate payday loans that's causing me to lose money on NSF fees from my bank?
Answer: There are several different types of consolidation loans, but the one that will best suit your situation depends primarily on whether or not you own a home and your credit history. Also, the amount of your debt will be a consideration. If you onlyowe a few hundred dollars in payday loans, a debt consolidation loan may not be available to you, but if you owe several thousand, or more, a consolidation loan may be a good choice.
If you own a home, a secured debt consolidation loan may be right for you. This type of loan is essentially a home equity loan which is used to pay off your other creditors. Secured consolidation loans help many consumers by consolidating all of their debts into a single monthly payment with a lower interest rate and payment amount. However, be careful before you borrow money against your home to pay off credit cards and personal loans; you are converting what was previously unsecured debt into secured debt. This could cause you problems down the road if for some reason you are unable to make your payments, or if life circumstances force you to file bankruptcy, as you may not be able to discharge the secured debt as you would unsecured debt. However, secured debt consolidation loans work for many people, so this is an option to consider carefully–the Bills.com Savings Center is a great resource to help you find a lender for this type of loan.
Bills.com makes it easy to compare mortgage offers and different loan types. Please visit the loan page and find a loan that meets your needs at: Refinance Loan Page
If you do not own a home or other property to offer as collateral for a secured debt consolidation loan, there are several other options you should consider. You may be able to transfer your existing debts to a credit card with a lower APR, or one with a 0% introductory rate. A balance transfer could help you by consolidating all of your unsecured debts into a single account with a lower interest rate and lower monthly payment.
You may want to explore http://bills.centrro.com . Here you can search for credit cards that meet your needs. A card such as the Discover Platinum, with a 0% APR for 12 months, and 10.99% thereafter, is certainly a good deal as far as credit cards go. You could also look into an unsecured personal loan to consolidate your debts–check out the loans section of the Bills.com Savings Center for unsecured
debt consolidation loans that may improve your situation. However, if your credit history is less than perfect, you may have difficulty finding a lender willing to extend you credit, and if you do find a loan, you should expect to pay a premium in interest. In fact, a conventional unsecured debt consolidation loan, such as those I mention above, may be impractical and cost-prohibitive if you have credit problems.
A possible alternative loan resource you may want to explore is www.Prosper.com, a site which puts private lenders in contact with private borrowers. A private lender may be more willing extend you a loan than a traditional bank. If one of these options will not work for your situation, the Bills.com offers a wealth of information regarding the various debt help options available to consumers–visit http://www.bills.com/debthelp/ for more information.
I hope we can help you find a solution to your debt troubles, and help you Find. Learn. Save.
Best of luck,
Bill
www.bills.com
Also, make sure to get a free financial health check-up with Bills IQ!
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1. Posted by C Murphy on Thursday 27th March 2008 21:11
I pay over 600.00 a month intrest for payday loans. I need help in trying to resolve this situation. I want to pay these loans off. Any advice would be welcome.
2. Posted by Bill on Friday 28th March 2008 07:28
You may be in luck in regard to your difficulty in repaying these loans. There are eight states whose payday loan regulating statutes require lenders to set up an installment repayment plan if an account reaches the maximum number of rollovers allowed by law and the debtor declares that he/she is unable to pay the balance due. Check out the payday loan information from the Consumer Federation of America at http://www.paydayloaninfo.org where you will be able to read all about these loans and the various state attempts to regulate them. Follow the “state information” link to find out the specific regulations for payday lenders in your state, and if you live in one of the eight states requiring installment payments. If your state does require repayment plans, and the lender still won’t accept payments, call your state regulator of payday loans, usually an assistant Attorney General, and complain. You should get the results you want after the Attorney General’s office becomes involved. If you are not in one of those states, you may want to consider simply making payments to the lender of whatever you can afford to pay down the balance of the loan over time. In most states, the rollover limit will soon be reached, and the interest rate the lender can charge will be capped by state law. If the lender will not accept your payments, simply put what you can afford aside each month until you have enough money to either pay off the loan or to offer a settlement. Read up on the regulations in your state to find the best strategy for your situation.