Do you need cash? If yes, then are you aware about the payday loans? A payday loan is actually a short term loan that enables you to get money instantly during emergencies. If you have taken out several payday loans at a time, then you will find it difficult to manage each of them. You may consolidate your payday loans to make a single monthly payment. The greatest advantage of this loan is you can get it even if you have a bad credit score. Actually, the lender will not check your score before giving you the loan. However, the drawback of payday loan is that you are charged high interest rate on it. As such, you should think twice before you decide to obtain this loan. Payday loans are also known as cash advance loans.
Check out the 5 steps how payday loan consolidation can be done.
1. Obtain a secured consolidation loan – If you have your own house, then you may take out a consolidation loan that is secured. You can obtain this loan at a low rate of interest. If you owe huge amount on your payday loan, then this option will help you pay off the loan.
2. Search for private lenders who will give money – If you have too many payday loans, then you must be worried as to how you will get rid of them. You may search for private lenders who will provide you money. This way, you will be able to eradicate the payday loans.
3. Use plastic money that do not have annual fees – In order to consolidate payday loan, you may use plastic money that does not have annual fees. Also, see that your credit card charges 0% introductory rate for repaying the loans. You will have to make a single payment every month and pay less in fees and interest payments.
4. Take out unsecured loan from a financial institution – You may obtain unsecured loan from a financial institution that is authentic. For many people, this is a great option since no collateral is required for it. Make sure you have a good credit score if you want to avail the advantage of getting this loan.
5. Ask your friend if they can provide you a loan – You may ask a close friend of yours to provide you a loan. If he agrees to it, make sure the loan agreement is made in a written form. This will enable you to avoid any kind of misunderstanding between both of you. Since you are obtaining the loan from your friend, you can request him to charge a favorable interest rate.
If you have taken out a payday loan, then you should make it a point to repay it within the specified time period. Since you are charged high interest on this loan, try not to delay the payments. Thus, you need to follow the above-mentioned steps when you want to consolidate payday loans and come out of it.