Information regarding help with consolidating only payday loans - The Bills.com Blog
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Information regarding help with consolidating only payday loans
Question: I am wondering if there is any type of program out there to assist in getting out from under the horrendous cycle of the several payday loans I have. They are eating away my finances and I do not have the credit score to get a loan. Is there any way my positive payment history on any of the 4 or 5 payday loans can assist ingetting a personal loan?
Answer: If you only owe 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. Please keep in mind that the positive repayment history associated with the payments on your payday loans will not significantly help you in getting another loan. As I do not have sufficient information about your financial situation, it will be difficult for me to comment on the effect of your timely payments on these payday loans on your overall score. Payday loans should always be a last resort, and you should pay them back as quickly as you can, otherwise you will find yourself in the vicious cycle of this type of debt.
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 payday loans. 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. 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: https://www.bills.com/mortage/refinance/.
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 https://www.bills.com/general/credit/. 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.
Finally, if none of these options work out, you can always request for some help from your family and friends bearing in mind that you pay off the amount that you borrow as soon as you are able to and thereby stop the cycle of payday loan debt.
I hope that the information provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com
Also, make sure to get a free financial health check-up with Bills IQ!
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