Payday loans have become common among online cash stores. People opt for Payday loans because it promises to make ends meet and offer quick access to money. But these loans are often expensive and carry an average annual interest rate of over 300%, in addition to other charges.
With a simple online search, you can find numerous websites that offer Payday loans. Unlike some loans you could use to leverage your investments and grow your finance, a Payday loan will likely squash your finance.
Regardless of why you borrowed a payday loan, whether to fix an emergency or to settle an old debt, one thing is sure. With payday loans, you’ve got a high-interest debt to pay.
Nonetheless, if you are trapped in a payday loan debt and you are unable to repay your payday loans, do not feel terrible. With many people on the edge to borrow a payday loan, rest assured you’re not alone. You can opt for better alternatives and not worry about payday loans again.
Instead of worrying about payday loans, do this instead:
Consider Payday Loan Consolidation
Payday loan consolidation means moving from short-term debt to long-term debt with better payment terms. You can consolidate your payday loan into a credit card, credit union loan, or personal loan for a lower interest rate.
Payday loan consolidation is a game changer; no high-interest fees and no additional fees. Payday loan consolidation reduces the interest rate on the consolidated loan to buy you an extension of the payment time, which can last for 2 years or more.
With payday loan consolidation, you don’t have to stay stuck in the payday loan trap. Be rest assured; payday loan debt consolidation is the best form of payday loan relief you can get.
Get an Advance Pay From Your Employer
Another way to never worry about payday loans is to consider getting advance payment from your employer. Instead of securing a Payday loan and incurring more debts, you can ask your employer to grant you a paycheck advance for your emergency. And because this is an advance, not a loan, no interest will be attached.
Speak With a Credit Counseling Agency
If you already have debts to pay, speak with a credit counseling agency on a debt management plan instead of taking out another Payday loan.
A credit counseling agency can help you set up a debt management plan. The counselor can negotiate with your creditors to create new payment plans. Creditors may waive fees and lower the interest rate on your accounts.
Conclusion
You should only consider a Payday loan if your finances are tight enough. You risk getting into a debt trap if you cannot repay the loan on time, coupled with its high-interest fee.
The alternatives listed above can help you escape payday loan debt. If you are going for loan consolidation, ensure you meet the minimum requirements to qualify for debt consolidation/payday loan relief. And endeavor to repay what you borrowed in due time.
