Most of the Americans rely on payday loans in order to manage their emergency expenses at the middle of the month. Payday loans are short term loans and people with blemished credit report can also apply for this loan. Many consumers take out more than one payday loan in order to avoid the exigent repayment terms. As a result, the consumers may further complicate their financial situation. If you’re in a similar situation, then you can enroll in a payday loan debt consolidation program.
Here are a few effective ways to consolidate your payday loan debt:
1. Prepare a list of the owed amount: When you’re planning to consolidate your debts, you need to prepare a list of the owed amount along with the interest rate on each debt. You can keep track of your owed amount when you have a list of the owed amount. It can help you while consolidating your debts.
2. Formulate a budget plan: You can prepare a budget plan in accordance with your financial situation. It can help to keep track of your expenses when you’re on a budget plan. Budgeting helps you avoid overspending and you can stay within your means. You can use the saved amount to consolidate your debts.
3. Negotiate with the creditors: You can negotiate with the creditors to lower the interest rate on the principal balance. Once you manage to lower the interest rate, it can help to lower your monthly payment.
4. Apply for a new card: You can apply for a new card with introductory offer like zero or lower interest rate. If your credit report is blemished, then you can ask any one of your relatives with good credit score to cosign on your behalf. Therefore, it can help you get a new card with introductory offer. You can transfer your high interest balance to the new card in order to lower your monthly payments. Make sure you pay off the owed amount before the introductory offer expires.
5. Borrow from your close pals: You can borrow from your close pal in order to consolidate your debts. Your close friend may provide you the loan on low or zero interest rate. Therefore, it can be easier to consolidate your high interest debts with the new loan. Once you pay off your existing loan, you can work on paying back your close pal.
Therefore, you need to keep the above mentioned tips in mind in order to regain control over your financial situation without blemishing your credit report.